Brazil’s largest private asset manager, Itáu Asset Management, has recommended that investors allocate 1-3% of their portfolios to bitcoin. .
In a year-end note, Renato Eid, head of beta strategies and responsible investment at Itaú Asset Management, argued that bitcoin’s lack of correlation with traditional local assets makes it a useful diversification tool.
The rating echoes Bitcoin allocations recommended by other major asset managers. Earlier this month, Bank of America wealth advisors gave the green light to recommend a BTC allocation of up to 4%, while BlackRock indicated 2%.
Eid emphasized a measured approach, not making crypto the centerpiece of a portfolio but using it as a complementary asset that can help absorb shocks from currency depreciation and global volatility.
“The idea is not to make cryptoassets the core of the portfolio but to include them as a complementary component, sized appropriately to the investor’s risk profile,” Eid wrote.
This year, bitcoin hit a record high near $125,000 before falling back to around $90,000. For local investors, the journey has been made even more difficult by currency fluctuations.
Products like BITI11, a Bitcoin ETF traded in Brazil, have seen their reais performance affected by the weakening of fiat currency. But in times of stress, like late 2024, the global nature of BTC has provided some insulation.
Eid cautioned against trying to time the market and suggested a disciplined, long-term mentality. He says small but steady exposure to bitcoin can act as a partial hedge and provide access to global returns, especially as traditional asset correlations become less reliable.
“This calls for moderation and discipline: setting a strategic tranche (e.g., 1-3% of the total portfolio), keeping a long-term horizon, and resisting the temptation to react to short-term noise,” Eid wrote.
