Brazil’s largest private bank, Itaú Unibanco, has advised its clients to consider allocating up to 3% of their portfolios to Bitcoin. The recommendation was made by Itau Asset Management, the bank’s investment division.

In a recent report outlining investment strategies for the coming year, the bank states that holding a small portion of Bitcoin can further help investors diversify their portfolios and reduce risk.

Why Itau Is Recommending Bitcoin

Itau explained that Bitcoin behaves differently from traditional assets like stocks and bonds. BTC can help balance a portfolio during periods of market uncertainty. The bank suggested allocating between 1% and 3% to Bitcoin and advised investors to treat it as a long-term investment rather than a short-term trade.

Itau also stated that Bitcoin’s global nature could help protect investors from local currency fluctuations, especially in an emerging market like Brazil. Renato Eid, Itau Asset Management’s head of beta strategies and responsible investment, in a recent research note, concluded:

“The idea is not to make investors use bitcoin as the core of their total portfolio, but rather to integrate it as a complementary component.” In his words, “the goal is to capture returns uncorrelated with domestic cycles, partially protect against currency devaluation, and add potential for long-term appreciation.”

Growing Acceptance of Crypto

This move highlights the growing acceptance of cryptocurrencies by traditional financial institutions. In recent years, several global banks and asset managers have begun to recognize Bitcoin as a legitimate investment asset.

n Itau itself has been expanding its crypto services. The bank already allows clients to trade cryptocurrencies through its digital investment platforms and has supported crypto-related investment products.

n It will be recalled that the bank launched Bitcoin and Ethereum trading in December 2023. Also, the central bank in Brazil recently released new rules for domestic digital asset firms, requiring them to register with the central bank to operate legally in the country.

What This Means for Investors

Itau’s recommendation does not mean investors should go “all in” on Bitcoin. Instead, the bank advises a careful, limited exposure to improve long-term portfolio performance.

The advice signals a shift in how major banks in Latin America view digital assets — from risky speculation to a possible part of a balanced investment strategy.