Itaú Asset Management, the investment arm of Brazil’s largest private bank, Itaú Unibanco, has advised investors to consider allocating between 1% and 3% of their portfolios to Bitcoin in 2025. The recommendation comes amid rising geopolitical uncertainty, changing global monetary policies, and persistent currency risks that are reshaping portfolio strategies worldwide.
In a recent research note, Renato Eid, portfolio manager at Itaú Asset, described Bitcoin as a complementary asset with characteristics that set it apart from traditional investments. According to Eid, Bitcoin operates independently from fixed income, equities, and domestic markets, offering unique return dynamics and acting as a hedge against currency depreciation due to its global and decentralized nature.
Despite Bitcoin’s volatility over the past year, Itaú believes its long-term diversification benefits outweigh short-term price swings. Bitcoin started 2025 near $95,000, dropped to around $80,000 during the tariff-related market turmoil, surged to a record high of $125,000, and later stabilized close to $95,000. This price behavior, while turbulent, reinforced the asset’s non-correlation with traditional markets.
Bitcoin as a Portfolio Diversifier Amid Currency Volatility
Brazilian investors have experienced Bitcoin’s volatility more sharply than many global peers. The Brazilian real strengthened by approximately 15% this year, magnifying local losses on Bitcoin holdings when measured in local currency terms. Even so, Itaú Asset argues that a modest and consistent allocation to Bitcoin can help mitigate risks that conventional assets fail to address.
Using internal data, the bank highlighted the low correlation between BITI11, its locally listed Bitcoin ETF, and other major Brazilian and international asset classes. This low correlation suggests that even a small Bitcoin position can improve overall portfolio balance and reduce exposure to currency-driven shocks.
Itaú emphasized that allocating just 1% to 3% of a portfolio to Bitcoin allows investors to benefit from diversification without taking on excessive risk. The bank views Bitcoin not as a replacement for traditional assets, but as a strategic addition designed to strengthen portfolios during periods of macroeconomic uncertainty.
Itaú Asset Expands Its Commitment to Crypto Investments
Itaú Asset’s confidence in digital assets is also reflected in its recent structural moves. In September, the firm launched a dedicated crypto division, appointing former Hashdex executive João Marco Braga da Cunha to lead the initiative. This new unit builds on Itaú’s existing digital asset offerings, which already include a Bitcoin ETF and a retirement fund with crypto exposure.
Looking ahead, Itaú plans to broaden its crypto product lineup. The bank is exploring solutions ranging from fixed-income-style crypto instruments to higher-volatility strategies involving derivatives and staking. These developments signal Itaú Asset’s long-term commitment to integrating digital assets into mainstream investment portfolios.
By recommending a measured Bitcoin allocation and expanding its crypto capabilities, Itaú Asset positions itself at the forefront of institutional crypto adoption in Brazil, while encouraging investors to approach the asset class with discipline and a focus on diversification rather than speculation.
