Brazil's Itaú Unibanco Recommends 1-3% Bitcoin Allocation for Investor Portfolios

Itaú Unibanco Endorses Bitcoin for Portfolio Diversification

Itaú Unibanco, Brazil's largest private bank, has officially recommended that investors allocate between 1% and 3% of their investment portfolios to Bitcoin (BTC) for the year 2026. This strategic advice, issued by Itaú Asset Management, the bank's investment arm, highlights Bitcoin's potential for diversification and its utility as a hedge against currency devaluation.

The recommendation positions Bitcoin not as a core investment, but as a complementary asset designed to enhance portfolio resilience amidst global economic uncertainties.

Rationale Behind the Recommendation

The bank's research note, published around December 12-13, 2025, detailed the rationale for this allocation. Renato Eid, head of beta strategies and ESG Integration at Itaú Asset Management, emphasized Bitcoin's distinct characteristics.

Eid stated that Bitcoin is '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 bank's internal data indicated a low correlation between its locally listed Bitcoin ETF, BITI11, and other major asset classes, supporting the diversification argument. This low correlation is seen as crucial for smoothing risks that traditional assets may fail to hedge, particularly in an environment marked by geopolitical tensions, shifting monetary policies, and persistent currency risks.

Itaú's Expanding Digital Asset Strategy

Itaú Unibanco's recommendation is part of a broader strategic move into the digital asset space. In September 2025, Itaú Asset Management established a dedicated crypto division, led by former Hashdex executive João Marco Braga da Cunha. This unit has been expanding the bank's existing digital asset offerings, which already include a Bitcoin ETF and a retirement fund with exposure to cryptocurrencies.

The bank plans to further develop a comprehensive suite of digital asset products, ranging from fixed-income-style instruments to more volatile strategies like derivatives and staking. This proactive approach aligns with the growing institutional acceptance of cryptocurrencies and Brazil's move towards large-scale tokenization, expected to begin in 2026.

Market Context and Global Trends

The recommendation comes after a volatile year for Bitcoin in 2025, with prices fluctuating between approximately $80,000 and $125,000, after starting the year near $95,000. Brazilian investors experienced amplified volatility due to the Brazilian real's 15% appreciation during the year, which intensified local losses for Bitcoin holders.

Itaú's guidance mirrors trends observed among other major global financial institutions. Banks such as Morgan Stanley and Bank of America have also suggested similar limited allocations to digital assets, typically ranging from 1% to 4%, for suitable clients, recognizing Bitcoin's role as a digital store of value and a maturing asset class.