Itaú Asset Management, the investment arm of Brazil’s largest private bank, says investors should consider allocating 1% to 3% of their portfolios to Bitcoin in 2026, citing diversification benefits and protection against currency risk despite the asset’s recent volatility.
Bitcoin gains ground as a portfolio diversifier
Itaú Asset Management believes the current global environment strengthens Bitcoin’s role in investment portfolios. In a recent research note, portfolio manager Renato Eid pointed to rising geopolitical tensions, shifting monetary policies, and ongoing currency instability as reasons investors should look beyond traditional assets.
According to Eid, Bitcoin behaves differently from fixed income, equities, and domestic market instruments. Its global and decentralized structure gives it a unique return profile and allows it to act as a hedge against currency weakness, especially in emerging markets like Brazil.
Volatility remains, but small exposure can reduce risk
Bitcoin’s price swings have been pronounced over the past year. The asset started 2025 near $95,000, dropped toward $80,000 during the tariff crisis, then climbed to a record $125,000 before settling again around $95,000. While these moves highlight Bitcoin’s volatility, Itaú argues that limited exposure can still be beneficial.
Brazilian investors have felt these fluctuations more sharply due to the Brazilian real strengthening by roughly 15% this year, which magnified local losses. Even so, Itaú’s internal data shows low correlation between BITI11, its Bitcoin ETF listed in Brazil, and major local and global asset classes, supporting the case for modest allocation.
Itaú deepens its push into digital assets
The recommendation comes as Itaú continues to expand its crypto strategy. In September, the bank launched a dedicated crypto unit led by former Hashdex executive João Marco Braga da Cunha, signaling long term commitment to digital assets.
Beyond its existing Bitcoin ETF and crypto linked retirement fund, Itaú plans to roll out a wider range of products. These include lower risk instruments with fixed income characteristics as well as higher volatility offerings such as derivatives and staking, giving investors multiple ways to gain exposure to the crypto market.