The largest bank in Brazil, Itaú, tells investors to allocate up to 3% to Bitcoin by 2026

Source: Yellow Original Title: Brazil’s largest bank, Itaú, tells investors to allocate up to 3% to Bitcoin by 2026

Original Link: Itaú Asset Management, the investment arm of Brazil’s largest private bank, has recommended investors allocate between 1% and 3% of their portfolios to Bitcoin in 2026.

The recommendation, issued earlier this week, comes despite Bitcoin’s turbulent 2025, a year in which the cryptocurrency hit an all-time high above $125,000 in October before retreating to current levels around $90,000.

Renato Eid, head of beta strategies at Itaú Asset, said the global backdrop of geopolitical tensions and persistent currency risks strengthen the case for adding exposure to cryptocurrencies.

What happened

Itaú Asset issued a research note recommending a modest position in Bitcoin as a portfolio diversifier.

The bank characterized Bitcoin as “a distinct asset from fixed income, traditional stocks, or domestic markets,” with its own return dynamics.

Brazilian investors experienced increased volatility as the real appreciated approximately 17% against the dollar this year. This currency movement amplified local losses for investors holding dollar-denominated assets like Bitcoin.

Internal data from Itaú showed a low correlation between BITI11, its locally listed Bitcoin exchange-traded fund, and other major asset classes.

The bank established a dedicated cryptocurrency division in September and appointed former Hashdex executive João Marco Braga da Cunha to lead it.

Why it matters

The recommendation represents significant backing from an institution managing $185 billion in assets.

Itaú Asset joins other top-tier financial institutions in recommending small allocations to cryptocurrencies, suggesting between 1% and 3% as a diversification component.

The guidance emphasizes Bitcoin’s role as a complementary component in the portfolio rather than a central position.

Eid noted that the allocation aims to capture non-correlated returns with domestic cycles while offering partial protection against currency depreciation.

The crypto division plans to develop products ranging from fixed-income-style instruments to more volatile strategies such as derivatives and staking.

Itaú already offers direct cryptocurrency trading through its mobile app, with custody managed internally.