How to allocate up to 3% in Bitcoin: Itaú's advice for Brazilian investors

The first private wealth manager in Brazil suggests to its clients to allocate a small portion of their investments in Bitcoin to hedge against exchange rate risks and global volatility. According to Renato Eid, head of responsible investment strategies at Itaú Asset Management, the lack of correlation between BTC and local traditional assets makes it a particularly effective tool for diversifying portfolios.

Why it’s important to allocate in Bitcoin: the logic of diversification

Bitcoin represents a unique resource in the context of Brazilian investments. Unlike local securities and traditional instruments, the price of BTC ($78.74K at the time of analysis) moves according to global dynamics, independent of national economic cycles. For Brazilian investors, this feature is especially important: when the real depreciates against the dollar, Bitcoin tends to act as a buffer, partially offsetting currency losses.

Itaú’s proposal is certainly not reckless. Eid explicitly emphasizes that cryptocurrency should not become the core of the portfolio, but rather a complementary component sized according to individual risk profiles. The suggested allocation ranges from 1% to 3% of the total invested amount — a conservative proportion that provides protection without excessive exposure.

The recommended allocation by Itaú and the global consensus among wealth managers

Itaú is not alone in this recommendation. Bank of America has recently authorized its wealth advisors to recommend allocations up to 4% in Bitcoin, while BlackRock indicates a threshold of 2%. This convergence among leading industry players signals a growing institutional acceptance of Bitcoin as a diversification asset.

In 2025, Bitcoin reached record levels close to $125,000 before consolidating around $90,000. For local investors, the path was even more complex due to fluctuations in the local currency. Products like BITI11, a Bitcoin ETF listed in Brazil, were impacted by the real’s depreciation, but during periods of geopolitical tension and financial instability, Bitcoin’s global nature provided significant protection.

Long-term allocation strategies: discipline and moderation

Eid categorically rejects market timing — the attempt to predict short-term market movements. Instead, he recommends a structured and disciplined approach: define a strategic allocation percentage (for example, between 1% and 3%), maintain a multi-year horizon, and resist emotional reactions to daily fluctuations.

“Requires moderation and discipline: establish a strategic quota, maintain a long-term horizon, and resist the temptation to react to short-term noise,” Eid stated in the year-end analysis note. A small but consistent exposure to Bitcoin can serve both as partial protection against macroeconomic instability and as access to returns linked to global dynamics, especially as correlations between traditional assets become increasingly unreliable.

According to the Itaú executive, the key lies in balance: allocating in Bitcoin as a protective tool, not as a speculative gamble. This perspective aligns investments with a coherent and sustainable strategy over time, particularly relevant in a context where currency risks and international volatility pose constant threats to local wealth.