Brazil’s largest private asset manager, Itáu Asset Management, recommended investors allocate between 1% and 3% of their portfolios to bitcoin. .
In a year-end note, Renato Eid, head of beta strategies and responsible investing at Itaú Asset Management, argued that bitcoin’s lack of correlation with traditional local assets makes it a useful diversification tool.
The note echoes bitcoin allocations recommended by other major asset managers. Earlier this month, Bank of America gave the green light to wealth advisors to recommend a BTC allocation of up to 4%, while BlackRock has targeted 2%.
Eid emphasized a measured approach, not making cryptocurrencies the centerpiece of a portfolio, but rather using them as a complementary asset that can help absorb the impacts of 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, with a size appropriate to the investor’s risk profile,” Eid wrote.
This year, bitcoin hit a record near $125,000 before falling back to around $90,000. For local investors, the road was even bumpier due to currency fluctuations.
Products like BITI11, a bitcoin ETF traded in Brazil, saw their performance in reais affected by the weakening of the fiat currency. But in periods of stress, such as late 2024, the global nature of BTC provided some insulation.
Eid warned against trying to time the market and suggested a disciplined, long-term mindset. A small, consistent exposure to bitcoin, he says, can act as a partial hedge and offer access to global returns, especially as traditional asset correlations become less reliable.
“It requires restraint and discipline: establishing a strategic portion (for example, between 1% and 3% of the total portfolio), maintaining a long-term horizon and resisting the temptation to react to short-term noise,” Eid wrote.
