Brazilian Banking Giant Endorses Bitcoin as Portfolio Diversification Tool
Itaú Asset Management advised investors to allocate between 1 and 3 percent of portfolios to Bitcoin for 2026. According to Cointelegraph, the investment arm of Brazil's largest private bank made the recommendation on December 13, 2025. Itaú Unibanco's asset management division published a research note explaining the rationale. Renato Eid from Itaú Asset cited geopolitical tension and currency risks as key factors.
Bitcoin's price volatility marked 2025 with swings between $80,000 and $125,000. The asset started 2025 near $95,000 before reaching an all-time high. Brazilian investors experienced amplified volatility as the real strengthened 15 percent this year. Despite these fluctuations, Itaú Asset described Bitcoin as distinct from traditional stocks and fixed income. The bank called Bitcoin a currency hedging tool due to its decentralized nature.
Portfolio Diversification Benefits Drive Recommendation
Itaú Asset's internal data showed low correlation between its Bitcoin ETF and major asset classes. The bank's BITI11 product demonstrated minimal connection to Brazilian and international market indices. This low correlation supports Bitcoin's role in reducing portfolio risk during market downturns. Investors can smooth risks that traditional assets fail to hedge with modest allocations.
AInvest reported that 76 percent of global investors planned to expand digital asset exposure in 2025. Nearly 60 percent expected to allocate over 5 percent of assets under management to crypto. Bank of America recommended 1 to 4 percent Bitcoin allocations for wealthy investors. These allocation ranges balance growth potential against volatility risks.
We reported that Harvard University expanded its Bitcoin ETF position to $443 million in the third quarter of 2025. Harvard increased its BlackRock Bitcoin ETF holdings by 257 percent during that period. The investment represented Harvard's largest publicly disclosed holding. Institutional acceptance of Bitcoin as a portfolio component continued growing throughout 2025.
Traditional Finance Embraces Digital Asset Infrastructure
Itaú Asset created a standalone crypto division in September 2025. The bank appointed former Hashdex executive João Marco Braga da Cunha to lead the unit. The division expanded existing offerings including a Bitcoin ETF and crypto-exposed retirement fund. Itaú plans to develop products ranging from fixed-income instruments to derivatives and staking strategies.
Brazilian investors face unique currency challenges that Bitcoin may help address. The real's 15 percent appreciation in 2025 amplified local losses for Bitcoin holders. However, Itaú Asset argues steady Bitcoin allocations provide protection against currency devaluation over time. The bank's recommendation reflects growing institutional recognition of Bitcoin's hedging capabilities.
The trend extends beyond Brazil as global financial institutions integrate crypto products. Spot Bitcoin ETFs accumulated over $65 billion in assets under management by April 2025. BlackRock's IBIT dominated the market with nearly $75 billion in net assets. Traditional banks and asset managers now compete to offer cryptocurrency exposure to conservative investors.
