Brazil’s largest privately held asset manager, Itáu Asset Management, has recommended that investors allocate 1% to 3% of their portfolios to bitcoin .
In a year-end note, Renato Eid, head of beta strategies and responsible investments for Itaú Asset Management, argued that bitcoin’s lack of correlation with traditional local assets makes it a useful diversification tool.
The note mirrors the bitcoin allocations recommended by other major asset managers. Earlier this month, Bank of America’s wealth advisors recommended a BTC allocation of up to 4%, while BlackRock has pointed to 2%.
Eid emphasized a measured approach that does not make crypto the centerpiece of a portfolio, but uses 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 for the investor’s risk profile,” Eid wrote.
This year, bitcoin rose to a record near $125,000 before falling back to around $90,000. For local investors, the ride was even more bumpy due to currency fluctuations.
Products such as BITI11, a bitcoin ETF traded in Brazil, saw their results impacted in real terms by the weakened fiat currency. However, during periods of stress, such as the end of 2024, BTC’s global nature provided some insulation.
Eid cautioned against trying to time the market and suggested a disciplined, long-term mindset. A small, stable exposure to bitcoin, he says, can act as a partial hedge and provide access to global returns, especially as traditional asset correlations become less reliable.
“It requires moderation and discipline: set a strategic slice (for example, 1%-3% of the total portfolio), keep a long-term horizon and resist the temptation to react to short-term noise,” Eid wrote.
