The Market Mindset

Itaú Unibanco Holding SA, the largest private bank in Latin America, has advised its clients to invest up to 3% of their portfolios in Bitcoin by 2026.
The bank does not see Bitcoin as pure speculation. Instead, it views it as a way to protect wealth from the weakening of the Brazilian real.

Why Itaú Wants Clients to Hold Bitcoin

In a strategy report, analysts from the São Paulo–based bank said investors are facing two major problems: global economic uncertainty and instability in Brazil’s currency. According to the bank, these challenges require a fresh way of building investment portfolios.

Itaú recommends putting between 1% and 3% into Bitcoin to gain returns that are not directly linked to Brazil’s economic cycles.

“Bitcoin is different from fixed income, traditional stocks, or local markets. It has its own behavior, growth potential, and—because it is global and decentralized—it can also help protect against currency risk,” the bank explained.

The bank made it clear that Bitcoin should not be a main investment. Instead, it should be a supporting asset, adjusted according to each investor’s risk tolerance.

The goal is to earn returns that are not closely connected to Brazil’s economy, while also offering some protection against currency devaluation. At the same time, it allows investors to benefit from Bitcoin’s long-term growth potential.

Itaú highlighted that Bitcoin has a relatively low connection with traditional assets like bonds and stocks. Because of this, even a small allocation of 1% to 3% can improve diversification without adding too much risk to the overall portfolio.

The bank stressed that this strategy requires patience, discipline, and a long-term mindset—not emotional reactions to short-term price changes.

“Trying to perfectly time Bitcoin or other international assets is risky and often leads to poor results,” the bank warned.

Itaú’s 3% recommendation aligns with the most progressive global views and brings it closer to major US banks.
For example, institutions like Morgan Stanley and Bank of America have suggested allocations of up to 4% in Bitcoin.

However, for Brazilian investors, the situation is more complex.

The bank noted that in a world with shorter economic cycles and frequent global shocks, Bitcoin’s “hybrid nature” makes it different from traditional investments.

Itaú described Bitcoin as both a high-risk asset and a global store of value. This unique mix, the bank argued, offers a level of resilience that traditional fixed-income investments can no longer fully provide.

$BTC