Itaú Unibanco Holding SA, the largest private bank in Latin America, has recommended to its clients that they allocate no more than 3% of their portfolio to Bitcoin for the year 2026.
The bank presented cryptocurrency not as a speculative asset but as a hedge against the depreciation of the Brazilian real.
Why does Itaú want clients' funds in Bitcoin?
In their strategic memorandum, analysts from a bank operating in São Paulo noted that investors are facing both the uncertainty of global price developments and fluctuations in the value of the domestic currency. According to them, these conditions require a new approach to portfolio composition.
The bank recommends an allocation of 1–3% to Bitcoin to take advantage of returns that are not tied to domestic economic conditions.
“Bitcoin is an asset class that differs from fixed income, traditional equities, and domestic markets, as it has its own dynamics, return potential, and — due to its global and decentralized nature — a role as a currency hedge,” the bank wrote.
Itau emphasized that Bitcoin should not become a core holding in the portfolio. The bank considers this asset class a complementary allocation that is adjusted to fit the investor's risk profile.
The goal is to achieve returns that do not follow domestic economic conditions and to provide partial protection against currency depreciation. Additionally, there is an aim to maintain the potential for long-term capital appreciation.
The bank noted that Bitcoin and traditional asset classes correlate only slightly with each other. Investing 1–3% in Bitcoin can improve diversification without significantly increasing the overall portfolio risk.
The approach requires moderation, discipline, and a long-term perspective, not quick reactions to short-term price fluctuations, according to the bank.
“Pursuing perfect timing in assets like Bitcoin or other international markets is risky — and often futile,” the bank warned.
Itaú's 3% maximum level is in line with the most advanced international recommendations and narrows the gap compared to U.S. banks' guidelines.
In particular, the largest U.S. banks like Morgan Stanley and Bank of America have recommended their clients a maximum allocation of 4% to the leading digital asset.
For Brazilian investors, however, the stakes are different.
Itaú stated that in today’s contracting economic conditions and during increasing external shocks, Bitcoin’s “hybrid nature” makes it different from traditional asset classes.
The bank described the leading cryptocurrency as partly a high-risk asset and partly a global store of value. According to the bank, this combination provides stability in a way that traditional fixed income investing no longer does.
