The largest private bank in Brazil recommends that its clients allocate 3% to Bitcoin.
Itaú Unibanco Holding SA, the largest private bank in Latin America, has recommended that its clients allocate up to 3% of their portfolios to Bitcoin for 2026.
The bank does not see the cryptocurrency as a speculative asset but as a hedge against the loss of value of the Brazilian real.
Why does Itaú want its clients' funds in Bitcoin?
In a strategy note, analysts from the São Paulo-based bank said that investors face a double challenge from global price uncertainty and fluctuations in the national currency. They argue that these conditions require a new approach to building portfolios.
The bank recommends allocating between 1% and 3% to Bitcoin to achieve returns that are uncorrelated with local cycles.
“Bitcoin is an asset different from fixed income, traditional stocks, or local markets, with its own dynamics and return potential and — due to its global and decentralized nature — serves a currency protection function,” the bank wrote.
Itaú emphasized that Bitcoin should not become a main asset in the portfolio. Instead, the bank presents the asset as a complementary allocation that should be adjusted to the investor's risk profile.
The goal is to achieve returns that do not rely too heavily on local economic cycles and to partially protect against currency depreciation. It also seeks to maintain exposure to potential long-term appreciation.
The bank noted that the correlation between Bitcoin and traditional asset classes is relatively low. They argue that allocating between 1% and 3% can enhance diversification without significantly increasing the overall portfolio risk.
According to the note, this approach requires moderation, discipline, and a long-term view, rather than reacting to short-term price movements.
“Trying to find the ‘perfect moment’ in assets like Bitcoin or in other international markets is risky and often counterproductive,” the bank warned.
Itaú's 3% limit is aligned with the more advanced recommendations globally, approaching those of U.S. banks.
For example, large U.S. banks like Morgan Stanley and Bank of America have recommended that their clients allocate up to 4% of their assets to the leading digital asset. However, for investors in Brazil, the situation is different.
Itaú explained that in a world with shorter economic cycles and more frequent external shocks, the 'hybrid nature' of Bitcoin differentiates it from traditional assets.
The bank described the leading cryptocurrency as a high-risk asset and also as a global store of value. It argues that this combination provides a resilience that fixed income can no longer guarantee. #Binanceholdermmt $BTC
