Itaú Unibanco Holding SA, the largest private bank in Latin America, advised its customers to allocate up to 3% of their portfolios to Bitcoin in preparation for 2026.
The bank defined cryptocurrencies not as speculative assets, but as a hedge against the depreciation of the Brazilian real.
Itaú, the reason customers want to invest in Bitcoin
Analysts at this bank, headquartered in São Paulo, stated in a strategic report that investors are facing a dual challenge of global price uncertainty and domestic currency fluctuations. They concluded that a new approach to portfolio composition is necessary in this environment.
The bank recommends that including Bitcoin in a proportion of 1% to 3% can yield returns with a low correlation to the domestic economy.
“Bitcoin is an asset distinct from fixed income, traditional stocks, and the domestic market. Due to its unique dynamics, revenue potential, and global, decentralized nature, it also has currency hedge capabilities.” – Bank
Itaú has stated that Bitcoin should not become a core holding asset. Instead, it emphasized that this asset should be regarded as a supplementary allocation tailored to the investor's risk profile.
The goal is to secure returns that are not closely tied to domestic economic cycles and to partially defend against currency devaluation. It also aims to preserve some exposure to long-term appreciation.
The bank pointed out that the correlation between Bitcoin and traditional asset classes is relatively low. It explained that even a 1% to 3% allocation can enhance diversification without excessively increasing portfolio risk.
The report emphasized that this strategy requires moderation, discipline, and a long-term view rather than reacting to short-term price fluctuations.
“Attempts to time the market perfectly with Bitcoin or overseas assets carry significant risks and often lead to adverse effects.” – Bank
Itaú's 3% cap aligns with global advanced guidelines and narrows the gap with major U.S. banks.
Major U.S. banks, such as Morgan Stanley and Bank of America, have also advised their clients to allocate up to 4% of their assets to representative digital assets.
However, the situation is different for Brazilian investors.
Itaú explained that Bitcoin's 'mixed nature' distinguishes it from traditional assets in an era where economic cycles are shortening and external shocks are becoming more frequent.
This bank has defined that the representative cryptocurrency possesses both the nature of a high-risk asset and a global store of value. It has claimed that this combination provides resilience that fixed-income assets can no longer guarantee.
