Brazil’s Biggest Bank Recommends Bitcoin for 2026 Portfolios

• Itaú Asset Management recommends investors allocate 1% to 3% of portfolios to Bitcoin in 2026.
• Bitcoin’s low correlation with traditional assets provides diversification benefits despite recent price volatility.

Itaú​‍​‌‍​‍‌​‍​‌‍​‍‌ Unibanco’s investment division has released a guidance that implies investors should allocate a small part of their holdings to digital currency in 2026. The advice indicates a range from 1% to 3% of the portfolio even if the market has been volatile lately. Thus, it is a big move for a major bank in Latin America to publicly support such an ​‍​‌‍​‍‌​‍​‌‍​‍‌idea.

Strategic Asset for Uncertain Times

The​‍​‌‍​‍‌​‍​‌‍​‍‌ bank’s study points out how Bitcoin is a different kind of asset in comparison to the traditional investment instruments like bonds and stocks. Renato Eid from Itaú Asset Management highlighted the digital currency as a potential instrument to hedge against fluctuations in the currency market and geopolitical uncertainties. Bitcoin, being a decentralized network, gives investors a way to have a share in a market that is not influenced by the standard forces of the traditional market. 

Throughout this year, Bitcoin has been extremely volatile, with its price changing substantially. It was trading close to $95,000 at the beginning of the year, and then there were significant ups and downs. The cryptocurrency went up to $125,000 only for a short time and then fell back to around $95,000 where it has been trading in the last few sessions. The Brazilian investors had a hard time as well since the real’s 15% appreciation this year has increased losses for those who held local currency while investing in ​‍​‌‍​‍‌​‍​‌‍​‍‌Bitcoin.

Analyzing​‍​‌‍​‍‌​‍​‌‍​‍‌ the situation, Itaú has pointed out that it would be strategically advantageous to hold a small amount of cryptocurrency as part of a diversified investment portfolio. The bank’s internal research shows that there is almost no correlation between its Bitcoin exchange-traded fund and other major asset classes. Such a low correlation level is in line with the diversification thesis, which can allow for a decrease in overall portfolio risk if the right allocation is made.

The bank has doubled down on its bet on digital assets by opening a separate crypto department in September. The ex-Hashdex executive João Marco Braga da Cunha is now heading this unit that goes beyond the bank’s Bitcoin ETF. The team will be there to offer new products like fixed-income securities, derivatives, and staking services to the investors who want to come on ​‍​‌‍​‍‌​‍​‌‍​‍‌board.

That​‍​‌‍​‍‌​‍​‌‍​‍‌ move by the bank is a good example of how institutional investors are gradually seeing cryptocurrencies not just as a speculation, but as a bona fide portfolio component. With the help of this bank, which is thus endorsing explicit percentage allocations, the investor gets very practical and direct guidance to carry on their journey in the shifting world of digital assets. This step, taken very cautiously, recognizes the very first of all the opportunities and also the risks inherent to the investment in cryptocurrencies in such market ​‍​‌‍​‍‌​‍​‌‍​‍‌conditions.

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