Brazil’s Largest Private Bank Advises 3% Bitcoin Allocation For Clients

Itaú Unibanco Holding SA, Latin America’s largest backstage bank, has advised clients to allocate up to 3% of their portfolios to Bitcoin for 2026.

The slope framed the cryptocurrency not arsenic a speculative asset, but arsenic a hedge against the erosion of the Brazilian real.

In a strategy note, analysts astatine the Sao Paulo-based lender said investors look a dual situation from planetary terms uncertainty and home currency fluctuations. They argued that these conditions necessitate a caller attack to portfolio construction.

The slope recommends a Bitcoin value of 1% to 3% to seizure returns uncorrelated with home cycles.

"Bitcoin [is] an plus chiseled from fixed income, accepted stocks, oregon home markets, with its ain dynamics, instrumentality potential, and — owed to its planetary and decentralized quality — a currency hedging function," the slope wrote.

Itau emphasized that Bitcoin should not go a halfway holding. Instead, the slope framed the plus arsenic a complementary allocation calibrated to an investor’s hazard profile.

The nonsubjective is to seizure returns that are not intimately tied to home economical cycles and to supply partial extortion against currency depreciation. It besides aims to sphere vulnerability to semipermanent appreciation.

The slope pointed to the comparatively debased correlation betwixt Bitcoin and accepted plus classes. It argued that an allocation of 1% to 3% tin heighten diversification without overwhelming wide portfolio risk.

The approach, the enactment said, requires moderation, discipline, and a semipermanent horizon, alternatively than reactions to short-term terms swings.

"Attempting 'perfect timing' successful assets similar Bitcoin oregon different planetary markets is risky — and often counterproductive," the slope warned.

Itaú’s 3% ceiling places it squarely successful enactment with the astir forward-looking planetary guidance, narrowing the spread with US counterparts.

Notably, large US banks specified arsenic Morgan Stanley and Bank of America person recommended that their clients allocate up to 4% of their assets to the flagship integer asset.

For Brazilian investors, however, the stakes are different.

Itaú said that successful a satellite of shortening economical cycles and much predominant outer shocks, Bitcoin’s “hybrid character” sets it isolated from accepted assets.

The slope described the flagship cryptocurrency arsenic portion high-risk plus and portion planetary store of value. It argued that this operation offers a signifier of resilience that fixed income tin nary longer guarantee.

Read archetypal communicative Brazil’s Largest Private Bank Advises 3% Bitcoin Allocation For Clients by Oluwapelumi Adejumo astatine beincrypto.com