Itaú Asset Management, part of Brazil’s largest private bank Itaú Unibanco, has recommended that investors allocate 1% to 3% of their portfolios to bitcoin in 2026.

The advice comes despite a volatile year for the asset, which saw bitcoin fall from around $95,000 to $80,000 during the tariff crisis before reaching a new all-time high of $125,000 and settling back at $95,000.

Rationale for bitcoin allocation

Renato Eid, representing Itaú Asset, explained that ongoing geopolitical tensions, shifting monetary policy, and persistent currency risks underscore bitcoin’s appeal as a complementary asset.

Eid described bitcoin as:

“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.”

Steadying portfolios amid currency swings

Brazilian investors have experienced bitcoin’s volatility more acutely due to the Brazilian real strengthening about 15% this year, amplifying local losses.

However, Eid argued that a modest bitcoin allocation can smooth risks that traditional assets fail to hedge.

Itaú’s internal data showed a low correlation between BITI11, its locally listed bitcoin ETF, and other major asset classes, supporting the diversification case.

As stated by the bank:

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

Itaú expands its bitcoin offerings

In September, Itaú Asset launched a dedicated bitcoin unit, led by former Hashdex executive João Marco Braga da Cunha.

This division expanded Itaú’s digital-asset offerings, including its bitcoin ETF and a retirement fund with bitcoin exposure. The bank also plans to introduce more products, from fixed-income-style instruments to higher volatility strategies like derivatives and staking.