Brazil’s leading private financial institution, Itaú Unibanco, suggests that investors dedicate between 1% and 3% of their portfolios to Bitcoin as a means to diversify holdings and guard against currency depreciation.
Renato Eid, who leads beta strategies and ESG integration at Itaú Asset Management, emphasized in a recent publication that maintaining a diversified portfolio with a carefully measured allocation to assets like Bitcoin is an effective approach. He clarified that the goal isn’t to make cryptocurrencies the centerpiece of investments but rather to include them as supplementary elements.
Eid further explained that this strategy aims to achieve returns unlinked from local economic fluctuations, offer some defense against weakening currency values, and provide potential for long-term growth.
More prominent financial entities are now incorporating digital currencies into their asset management frameworks. For instance, Morgan Stanley’s Global Investment Committee has advised suitable clients to allocate between 2% and 4% of their portfolios toward crypto assets. They regard Bitcoin as “digital gold” while acknowledging these assets remain speculative yet are becoming more established.
Similarly, Bank of America recommends its wealth management clientele consider investing 1%–4% in digital currencies through regulated investment products. The bank also plans to initiate research coverage on four Bitcoin ETFs managed by Bitwise, Fidelity, Grayscale, and BlackRock starting January. This move will empower its network of approximately 15,000 advisors with insights needed to suggest these offerings confidently.