Brazil’s Banking Giant Pushes for Bitcoin in Everyday Investments

Itaú Unibanco, the biggest private bank in Brazil, is stepping into the crypto spotlight, which is changing the country’s financial environment. In a current paper, its asset management team advises weaving Bitcoin into investment plans. This isn’t about pursuing fast wins it’s a deliberate move for stability in unpredictable times.

Itaú Asset Management, controlling large funds, has presented a basic method. They urge investors to commit a little slice between 1% and 3% of their portfolios to Bitcoin. This isn’t a big change; it’s only a small change to make it stronger. Renato Eid, head of beta strategies at Itaú, describes it simply: “The aim is not to make crypto assets the basis of the portfolio, but rather to incorporate them as a complementing component.”

Why this range? It’s tailored to reduce risks while reaping upsides.
Experts say that Bitcoin’s past performance shows that it moves differently than stocks or bonds, giving “uncorrelated returns.” In plain terms, when traditional investments wobble, Bitcoin might maintain steady or even grow.

The real, Brazil’s currency, has been having a hard time lately. It fell to 6.30 against the U.S. dollar in late 2024, but currently it has risen to about 5.42. Itaú thinks of Bitcoin as a shield here. Eid says it gives “partial insurance against currency devaluation” and a chance for long-term growth.

This warning comes amid Brazil’s developing crypto legislation. The central bank now requires digital asset enterprises to register, offering a safer place for investing. Itaú got in early, too. It started trading Bitcoin and Ether for clients in 2023 and worked with Galaxy Digital to create the BITI1 1 ETF in 2022. That fund now has around $115.6 million in assets.

Itaú’s viewpoint coincides with trends internationally. Bank of America has told rich clients to invest 1–4% of their money in cryptocurrencies. BlackRock has also pushed for similar ideas. In Brazil, this could increase acceptance, especially as organizations like Itaú lend credibility.

Note: This news was written by our editor, editted with the help of AI, and reviewed by our editor to ensure its accuracy and compliance with our standards.