As Bitcoin continues its journey through both market volatility and growing institutional adoption, Brazil’s largest private bank, Itaú, remains steadfast in its recommendation for cryptocurrency to be included in investment portfolios. With a suggested allocation of 1–3%, Itaú highlights Bitcoin’s potential as a hedge against currency risk and as an effective diversification tool for long-term investors.
Bitcoin: A Portfolio Diversification Tool Amid Uncertainty
In its most recent financial outlook, Itaú underscored Bitcoin’s unique traits as a digital asset, distinct from traditional investments like stocks or bonds. According to Itaú analyst Renato Eid, Bitcoin’s global and decentralized nature makes it a resilient asset during economic stress or geopolitical uncertainty. This sets the cryptocurrency apart as it often exhibits behavior uncorrelated with traditional financial instruments.
Despite Bitcoin’s inherent volatility, Itaú remains confident in its role as a stabilizer within a diverse portfolio. “Short-term declines do not undermine Bitcoin’s capacity to offer upside opportunities when traditional markets lag,” the bank stated in its report.
Bitcoin’s Role in Brazil’s Financial Landscape
For Brazilian investors, Bitcoin’s performance is intricately tied to currency fluctuations. The strengthening of the Brazilian real in 2025 amplified local investors’ losses during Bitcoin’s price swings. However, during the dollar’s surge in late 2024, Bitcoin acted as a store of value, demonstrating its role as a currency hedge.
To further expand access to digital assets, Itaú has launched its own custody and trading services. These include Bitcoin and Ethereum, with plans to incorporate more cryptocurrencies in the future. While users currently cannot transfer assets to external wallets, Itaú emphasizes security and ease of access by hosting custody on its own balance sheet.
A Growing Institutional Consensus
It’s not just Itaú that sees Bitcoin as a valuable addition to portfolios. Globally recognized institutions like Morgan Stanley and Bank of America have advised clients to consider a modest allocation of crypto, treating Bitcoin much like digital gold. Morgan Stanley recommends a 2–4% portfolio allocation, while Bank of America suggests between 1–4% exposure through regulated investment products.
By adopting platforms such as Itaú’s Íon or the BITI11 ETF on Brazil’s B3 exchange, investors can bypass custody complexities and gain exposure to Bitcoin more securely. Itaú emphasizes the importance of moderation, encouraging patience and strategic portfolio balance.
How to Get Started
If you’re inspired to follow Itaú’s advice and incorporate Bitcoin into your portfolio, tools like the Íon platform are worth exploring. Additionally, the BITI11 ETF offers an accessible way to gain exposure to Bitcoin for Brazilian investors, mitigating the complexities of self-custody while basking in the potential long-term gains of the cryptocurrency market.
While cryptocurrency investments carry inherent risks, Itaú’s approach resonates with a growing sentiment among institutional and retail investors alike: Bitcoin is here to stay. A small, strategic allocation could serve as a practical way to safeguard assets against uncertainties in a rapidly evolving global economy.
