A senior executive at Itaú Asset Management has recommended that investors allocate between 1% and 3% of their portfolios to Bitcoin (CRYPTO:BTC) as part of a diversified strategy.
Itaú Unibanco is the largest private bank in Latin America and a key player in Brazil's traditional financial system.
The recommendation was made by Renato Eid, head of beta strategies and responsible investment at Itaú Asset Management, in a recent research note.
Eid described Bitcoin as a “dual opportunity” that combines diversification benefits with protection against currency devaluation.
He warned investors against attempting to time the market and instead encouraged maintaining a long-term investment horizon.
“The idea is not to make crypto assets the core of the portfolio, but to integrate them as a complementary component,” Renato Eid said.
He added that Bitcoin can help capture returns that are less correlated with domestic economic cycles while offering long-term appreciation potential.
The note emphasised Brazil's ongoing currency volatility as a key reason to consider globally priced assets.
Brazil's real fell to record lows in December 2024, reportedly weakening to around 6.30 per US dollar before stabilising.
The currency is currently trading closer to 5.42 per US dollar, but concerns over future swings persist.
Eid highlighted Itaú Asset's BITI11 fund as a practical way for investors to gain Bitcoin exposure.
BITI11 is a Brazilian-listed exchange-traded fund that provides Bitcoin exposure through an ETF structure.
The fund launched on Brazil's B3 exchange in 2022 through a partnership between Itaú Asset Management and Galaxy Digital.
BITI11 currently holds about $115.6 million in assets under management, according to TradingView data.
“Maintaining or adding BITI11 offers international diversification and currency protection,” Renato Eid said.
The recommendation aligns with Itaú’s broader expansion into digital assets over recent years.
In December 2023, Itaú Unibanco launched Bitcoin and Ether (CRYPTO:ETH) trading for clients via its íon investment platform.
The bank acts as custodian for these services under Brazil's evolving regulatory framework.
Bank of America has also recently advised wealth clients to consider a 1% to 4% crypto allocation.
At the time of reporting, Bitcoin price was $88,516.31.