Brazil’s largest private bank says Bitcoin can improve portfolio diversification and hedge currency risk despite a volatile year for the asset.
News
Itaú Asset Management, the investment arm of Brazil’s largest private bank, Itaú Unibanco, has recommended that investors hold 1% to 3% of their portfolios in Bitcoin next year.
In a new research , Itaú Asset’s Renato Eid said that the global backdrop of geopolitical tension, shifting monetary policy and persistent currency risks strengthens the case for adding Bitcoin () as a complementary asset.
He called Bitcoin “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 suggestion comes despite a turbulent year for Bitcoin. The asset began 2025 near $95,000, slid toward $80,000 during the tariff crisis, then surged to an all-time high of $125,000 before settling back around $95,000.
Related:
Bitcoin can steady portfolios amid currency swings
Brazilian investors have felt Bitcoin’s volatility more intensely than global traders. The Brazilian real strengthened by about 15% this year, amplifying local losses for local investors.
However, Eid argued that a small, steady Bitcoin allocation can smooth risks that traditional assets fail to hedge. Citing the bank’s internal data, he said there is a low correlation between BITI11, its locally listed Bitcoin ETF, and other major asset classes, which supports the case for adding a modest BTC position to improve portfolio balance.
“By allocating around 1% to 3% in their investment portfolio, investors will in fact be taking advantage of an asset that generates diversification,” the bank wrote.
Related:
Itaú Asset Launches Dedicated Crypto Unit
In September, Itaú Asset and appointed former Hashdex executive João Marco Braga da Cunha to lead it. The unit expanded on Itaú’s existing digital-asset offerings, including its and a retirement fund with crypto exposure.
Itaú also plans to develop a broader suite of products, ranging from fixed-income-style instruments to higher-volatility strategies like derivatives and staking.
Magazine:
