In brief:
₿- Itaú Asset Management recommends a 1%–3% Bitcoin allocation as a long-term portfolio complement, citing diversification benefits and protection against currency volatility.
₿- Major global banks, including Bank of America, are converging on similar crypto allocation strategies, signaling that Bitcoin is increasingly viewed as a strategic portfolio diversifier.
Bitcoin continues to move closer to the financial mainstream as major banks refine how digital assets fit into diversified portfolios. Renato Eid, partner at Itaú Asset Management and head of beta strategies at Brazil’s largest private bank, has advised investors to allocate between 1% and 3% of their portfolios to Bitcoin. The recommendation reflects a measured strategy designed to balance diversification benefits with protection against currency volatility.
BITI11 and Brazil’s currency challenge
Eid has stressed that Bitcoin should not replace core holdings. Instead, it should function as a complementary asset that enhances long-term portfolio resilience. He also cautioned against short-term trading strategies, encouraging investors to maintain a long-term horizon rather than attempting to time market entry points.
The guidance specifically highlights BITI11, a Brazilian-listed Bitcoin ETF that began trading on the B3 exchange in 2022. Launched through a partnership between Galaxy Digital and Itaú Asset Management, BITI11 currently manages approximately $115.6 million in assets, offering regulated and accessible Bitcoin exposure for local investors.
Eid’s argument is closely tied to Brazil’s ongoing currency instability. The Brazilian real hit record lows in December 2024, weakening to around 6.30 reais per US dollar before recovering to roughly 5.42. According to Eid, holding globally priced assets such as Bitcoin can help mitigate the impact of foreign exchange shocks. He described Bitcoin exposure as a blend of international diversification, currency protection, and global store-of-value characteristics.
Itaú expands its crypto footprint
The allocation strategy aligns with Itaú Unibanco’s broader push into digital assets. In December 2023, the bank introduced Bitcoin and Ethereum trading within its íon investment platform, with Itaú serving as custodian for client holdings. The move signaled growing institutional confidence in offering crypto services within established banking infrastructure.
Wall Street reinforces the trend
Itaú’s position mirrors a broader shift among global financial institutions. Bank of America has issued one of its strongest signals yet that digital assets are becoming a standard part of modern portfolios. The bank now recommends that wealth management clients allocate 1%–4% of their portfolios to cryptocurrency. This guidance spans Merrill, Bank of America Private Bank, and Merrill Edge, extending digital asset access to more than 70 million clients.
Major banks drive Bitcoin’s shift from speculation to strategy
Brazil’s central bank has further strengthened the market by introducing new rules requiring domestic digital asset firms to register for legal operation. The framework provides clearer standards for crypto businesses and reinforces confidence among institutional and retail investors alike.
As traditional banks on both sides of the Americas converge on modest crypto allocations, Bitcoin’s role as a portfolio diversifier is increasingly viewed as strategic rather than speculative.
Stay informed,
Rodcas Consulting Group