📊 Brazil’s Largest Bank Endorses Bitcoin as a Portfolio Hedge
Brazil’s biggest private bank, Itaú Unibanco, is recommending that investors allocate 1%–3% of their portfolios to $BTC, positioning Bitcoin as a diversification tool rather than a speculative asset.
According to Renato Eid, head of beta strategies at Itaú Asset Management, Bitcoin should act as a complementary holding — not a core position. The emphasis is on long-term exposure over market timing, with BTC offering returns that remain largely uncorrelated to Brazil’s domestic economic cycles.
The recommendation is closely linked to currency risk. After the Brazilian real hit record lows in late 2024, Itaú pointed to Bitcoin’s potential role as a partial hedge against FX volatility, alongside its function as a global store of value.
The guidance references BITI11, a Brazil-listed Bitcoin ETF launched in partnership with Galaxy Digital. The fund manages over $115 million, offering local investors regulated BTC exposure with international diversification.
This move reflects a broader institutional shift. Similar allocation ranges are now being echoed by global banks, suggesting Bitcoin is increasingly seen not as an outlier, but as a structured component of portfolio construction — particularly in emerging markets.
Question: Is a 1%–3% BTC allocation becoming the new conservative baseline for institutional portfolios?
