Itaú Asset Management, Brazil’s largest privately-held money management firm, has recommended investors put 1% to 3% of their portfolios in Bitcoin as a hedge against exchange rate fluctuations and global inflation.
Brazil’s Largest Private Fund Itau Recommends 1-3% Bitcoin Portfolio Allocation
15 December 2025 - 09:45 CET
By Sandmark staff
The firm, the investment arm of Itaú Unibanco Holding, is the latest financial services provider to incorporate crypto as a core portfolio asset, according to its latest research.
In the US, Bank of America has suggested its wealth clients allocate between 1% to 4% of their holdings in crypto, while Morgan Stanley, BlackRock and Fidelity have all recommended clients invest in digital assets, with suggestions ranging from 1% to 5%.
Strategic slice
Adding Bitcoin to a portfolio would provide a “dual opportunity” of international diversification and exchange protection or as a global store of value, the report from Renato Eid, head of beta strategies and responsible investment for the Brazilian firm, said.
He advised investors to designate a "strategic slice, for example, 1%-3% of the total portfolio", and that they take a long-term horizon on the digital asset, "resisting the temptation to react to short-term noise", according to a translated version of the report. Such an approach "demands moderation and discipline," Eid wrote.
Seeking resilience
Itaú examined the price swings in Bitcoin, and acknowledged the volatility since the beginning of this year. The digital token’s "hybrid character," a mix of high-risk and global store of value, makes the asset an "interesting portfolio complement for those seeking resilience and international opportunity," it said.
In September, Itaú Unibanco’s asset management business established a dedicated cryptocurrency unit. As of early 2025, Unibanco had R$1.95tn ($359.3bn) in assets under management (AUM) and funds raised.
Dominant market
The largest economy in Latin America, Brazil, ranked fifth in global crypto adoption, according to Chainalysis' 2025 Global Adoption Index. Latin America followed closely behind Asia Pacific in onchain crypto activity, with adoption across retail and institutional users jumping to 63% from 53% a year ago, the report said.
Banco Central do Brasil (BCB) published three resolutions that operationalized the 2022 Virtual Assets Law in Nov. The Brazilian central bank has been designated as the regulator, while the Brazilian Securities Commission has jurisdiction over securities-like tokens and consumer protection issues.
The resolutions established the country's crypto framework, which includes the requirement for companies operating as custodians, exchanges, and intermediaries to become Sociedades Prestadoras de Serviços de Ativos Virtuais (SPSAVs) under the supervision of the BCB.
