Brazil’s Largest Private Bank Recommends Small Bitcoin Allocation for 2026
Brazil’s largest private bank says Bitcoin can help investors diversify their portfolios and manage currency risk, even after a volatile year for the digital asset.
Itaú Asset Management, the investment arm of Itaú Unibanco, has advised investors to consider allocating between 1% and 3% of their portfolios to Bitcoin in 2026. The recommendation was outlined in a recent research note by Renato Eid, head of investment strategy at the firm.
Eid said the current global environment — marked by geopolitical tensions, changing monetary policy, and ongoing currency risks — strengthens the case for including Bitcoin as a complementary asset.
He described Bitcoin as separate from traditional investments such as bonds and equities, noting that its global and decentralized nature allows it to act as a potential hedge against currency fluctuations.
Diversification Despite Volatility
The recommendation comes after a turbulent year for Bitcoin. The asset started 2025 near $95,000, fell toward $80,000 during market disruptions linked to trade tensions, then rallied to a record high of $125,000 before pulling back to around $95,000.
Brazilian investors felt those swings more sharply than many global peers, as the Brazilian real strengthened roughly 15% over the year, magnifying local losses.
Despite the volatility, Itaú Asset said a small and consistent Bitcoin allocation could help balance portfolios. According to the bank’s analysis, its locally listed Bitcoin ETF shows low correlation with major Brazilian and international asset classes, supporting its role as a diversification tool.
“An allocation of around 1% to 3% can help improve portfolio diversification,” the bank said.
Itaú Expands Its Crypto Efforts
Itaú Asset has been increasing its focus on digital assets. In September, the firm launched a dedicated crypto unit and appointed former Hashdex executive João Marco Braga da Cunha to lead the division.
The new unit builds on Itaú’s existing crypto offerings, which include a Bitcoin ETF and a retirement fund with crypto exposure. The bank also plans to roll out additional products, ranging from lower-risk income strategies to higher-volatility offerings such as derivatives and staking.
Featured image from: cointelegraph.com