Brazil’s Largest Private Bank Advises Investors To Allocate 3% To...

Brazil’s largest private bank says Bitcoin can improve portfolio diversification and hedge currency risk despite a volatile year for the asset.

Itaú Asset Management, the investment arm of Brazil's largest private bank, Itaú Unibanco, has recommended that investors hold 1% to 3% of their portfolios in Bitcoin next year.

In a new research note, Itaú Asset’s Renato Eid said that the global backdrop of geopolitical tension, shifting monetary policy and persistent currency risks strengthens the case for adding Bitcoin (BTC) as a complementary asset.

He called Bitcoin “an asset distinct from fixed income, traditional stocks, or domestic markets, with its own dynamics, return potential, and — due to its global and decentralized nature — a currency hedging function.”

The suggestion comes despite a turbulent year for Bitcoin. The asset began 2025 near $95,000, slid toward $80,000 during the tariff crisis, then surged to an all-time high of $125,000 before settling back around $95,000.

Related: Brazil’s crypto tax grab signals the end of an era

Brazilian investors have felt Bitcoin’s volatility more intensely than global traders. The Brazilian real strengthened by about 15% this year, amplifying local losses for local investors.

However, Eid argued that a small, steady Bitcoin allocation can smooth risks that traditional assets fail to hedge. Citing the bank’s internal data, he said there is a low correlation between BITI11, its locally listed Bitcoin ETF, and other major asset classes, which supports the case for adding a modest BTC position to improve portfolio balance.

“By allocating around 1% to 3% in their investment portfolio, investors will in fact be taking advantage of an asset that generates diversification,” the bank wrote.

Related: Why Brazil is using Bitcoin as a treasury asset and what other nations can learn

Source: CoinTelegraph