Brazil’s Itaú Bank Suggests Bitcoin Portfolio Allocation of 3% in 2026

TLDR

Table of Contents

Itaú Asset recommends a 1% to 3% Bitcoin allocation for portfolio diversification.
Bitcoin’s low correlation with traditional assets supports its portfolio hedging function.
Itaú’s new crypto division will expand digital-asset offerings, including Bitcoin ETFs.
Brazilian investors have faced amplified Bitcoin volatility due to the strengthening real.

Itaú Asset Management, Brazil’s largest private bank, is advising investors to allocate between 1% and 3% of their portfolios to Bitcoin in 2026. Despite the cryptocurrency’s volatility, the bank argues that Bitcoin can enhance portfolio diversification and act as a hedge against currency risk. This recommendation reflects Itaú’s growing focus on digital assets, with plans to expand its crypto offerings in the near future.

Itaú Asset Management Recommends 1-3% Bitcoin Allocation for 2026

Itaú Asset Management, the investment division of Itaú Unibanco, has recommended that investors allocate between 1% and 3% of their portfolios to Bitcoin for 2026. This suggestion, made despite Bitcoin’s volatility, highlights the asset’s potential role in diversification and hedging against currency risks. The bank’s research underscores how Bitcoin’s unique position can strengthen portfolios, particularly in times of geopolitical tension and changing monetary policies.

Renato Eid, a senior executive at Itaú Asset, pointed out that Bitcoin operates independently from traditional assets like stocks and bonds. He described the cryptocurrency as having its own dynamics and potential returns. “Due to its global and decentralized nature, Bitcoin offers a unique hedging function against currency fluctuations,” Eid explained. This recommendation signals Itaú Asset’s broader view of Bitcoin’s role as a complementary asset in a diversified portfolio.

Bitcoin as a Currency Hedge Amid Global Tensions

Itaú Asset’s recommendation for Bitcoin comes amid a backdrop of global geopolitical uncertainties and shifting monetary policies. With increasing currency risks and market volatility, Bitcoin presents an alternative to traditional assets. Despite its well-known volatility, Bitcoin has shown potential as a hedge for currency risks, particularly in Brazil, where the strengthening real has amplified local investors’ exposure to Bitcoin fluctuations.

Bitcoin’s low correlation with traditional asset classes, according to internal data from Itaú Asset, strengthens its case for inclusion in a balanced investment strategy. The bank’s Bitcoin ETF (BITI11) has been compared to major Brazilian and international market indices, showing a divergence in performance. This lack of correlation supports the argument that a small Bitcoin allocation can help manage risks that other assets may not address.

Itaú Asset Expands Its Crypto Division

In a move to expand its digital asset offerings, Itaú Asset launched a dedicated crypto division in September 2025. The new division is led by João Marco Braga da Cunha, who previously worked at the crypto firm Hashdex. Itaú Asset’s focus on the cryptocurrency sector aligns with its broader strategy of enhancing its digital asset offerings. The new crypto division will oversee products such as the Bitcoin ETF (BITI11) and retirement funds with crypto exposure.

Additionally, Itaú plans to develop a broader range of crypto products, including fixed-income-style instruments, derivatives, and staking opportunities. The bank’s move reflects its growing belief in the long-term potential of cryptocurrencies and the diversification benefits they can provide to investors.

Bitcoin’s Role in Portfolio Diversification

Despite the volatility associated with Bitcoin, Itaú Asset believes that a small allocation—ranging from 1% to 3%—can improve portfolio balance. This approach is particularly relevant as traditional assets like equities and bonds may not offer sufficient protection against current market risks. With ongoing shifts in global financial landscapes and the strengthening of local currencies, Bitcoin’s global reach and decentralized nature provide a unique opportunity to hedge against such risks.

While Bitcoin’s price fluctuations have been pronounced in 2025, Itaú Asset maintains that its role as a complementary asset with low correlation to traditional assets makes it a valuable tool for portfolio diversification. This approach, especially for investors who can tolerate a small degree of volatility, helps to ensure that portfolios remain balanced in times of market stress.