Brazil’s largest bank recommends a 3% Bitcoin portfolio allocation: ‘real diversification’

Renato Eid, head of beta strategies and responsible investment at Itaú Asset Management, the investment arm of Latin America's largest private bank Itaú Unibanco, has advised investors to allocate between 1% and 3% of their portfolios to Bitcoin. Eid views this as a "dual opportunity" for uncorrelated returns, protection against currency devaluation, and long-term appreciation, emphasizing a long-term horizon rather than market timing. This recommendation is linked to Itaú's BITI11 fund, a Brazilian-listed ETF offering Bitcoin exposure via a partnership with Galaxy Digital. The advice is particularly relevant in Brazil due to the volatility of the local currency, the real, against the U.S. dollar. This move aligns with Itaú's broader crypto expansion, including launching crypto trading services, and follows similar recommendations from other major financial institutions like Bank of America.

(Source：The Block)