Brazil’s largest private bank recommends investing up to 3% in Bitcoin

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Itaú Unibanco, Brazil’s largest private bank, recommended investors allocate 1%-3% of their investment portfolios to Bitcoin to enhance diversification and protect themselves from currency devaluation.

“Maintaining a diversified portfolio and adopting a coordinated allocation to assets such as Bitcoin appears to be a powerful strategy. The goal is not to make crypto assets the core of the portfolio, but to integrate them as complementary components,” Renato Eid, head of beta strategy and ESG integration at Itaú Asset Management, said in a recent report.

“The goal is to capture returns uncorrelated to the domestic economy, provide partial protection against currency depreciation and add the potential for appreciation over the long term,” the analyst said.

Major financial institutions are increasingly incorporating digital assets into their wealth management strategies.

Morgan Stanley’s Global Investment Committee recommended a 2% to 4% allocation to cryptocurrency assets for eligible clients, calling Bitcoin digital gold and describing the asset as speculative but mature.

Bank of America advised its wealth management clients to consider allocating 1% to 4% of their portfolios to digital assets through regulated investment vehicles.

The bank plans to begin research coverage of four Bitcoin ETFs from Bitwise, Fidelity, Grayscale and BlackRock in January, enabling its 15,000 advisors to recommend these products.