The bank launched Bitcoin and Ethereum trading inside its íon platform in December 2023, with Itaú acting as custodian for client holdings.
Bitcoin News
Itaú Asset Management partner Renato Eid has urged investors to allocate between 1% and 3% of portfolios to Bitcoin. The head of beta strategies at Brazil's largest private bank called this a calibrated approach to capture the dual benefits of diversification and currency protection.
Eid emphasized maintaining long-term horizons rather than attempting to time market entries. The goal is to integrate Bitcoin as a complementary portfolio component instead of making crypto assets the core holding strategy.
The recommendation explicitly references Itaú's BITI11 fund, a Brazilian-listed product offering Bitcoin exposure through an ETF structure. This fund began trading on Brazil's B3 exchange in 2022 through a partnership between Galaxy Digital and Itaú Asset, and is currently managing roughly $115.6 million in assets.
Eid's pitch focuses heavily on Brazil-specific currency volatility issues. The Brazilian real fell to record lows in December 2024, dropping as low as 6.30 reais per U.S. dollar during that month. The currency currently trades around 5.42 per dollar.
Holding globally priced assets provides partial protection against foreign exchange shocks. Eid wrote that maintaining or adding BITI11 represents international diversification combined with currency protection and global store of value characteristics.
The recommendation aligns with Itaú Unibanco's recent crypto expansion efforts. The bank launched Bitcoin and Ethereum trading inside its íon platform in December 2023, with Itaú acting as custodian for client holdings.
Bank of America recently recommended similar 1% to 4% crypto allocations for wealth clients. This growing acceptance among traditional financial institutions reflects Wall Street's shifting perspective on digital assets as legitimate portfolio components rather than speculative fringe investments.
Brazil's central bank recently released new rules requiring domestic digital asset firms to register with the central bank for legal operation in the country. This regulatory framework provides clearer operating parameters for crypto businesses serving Brazilian customers.
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