Brazil’s largest bank suggests a 1–3% Bitcoin allocation as a portfolio hedge

Brazil’s largest private bank, Itaú Unibanco, recently suggested that investors consider allocating around 1%–3% of their portfolios to Bitcoin, framing it as a diversification and risk-management tool rather than a speculative position.

According to Itaú Asset Management, the idea isn’t market timing or short-term performance, but long-term positioning. Bitcoin is viewed as a complementary asset that may help offset currency risk, especially after the Brazilian real reached record lows in late 2024.

The recommendation also highlights regulated exposure through local products like BITI11, a Brazil-listed Bitcoin ETF, which allows investors to gain BTC exposure within a familiar regulatory framework.

This seems to reflect a broader institutional trend where Bitcoin is increasingly discussed as a small but structured portfolio component, particularly in emerging markets.

Curious how others here view this approach — is a 1%–3% Bitcoin allocation becoming a conservative baseline for institutional portfolios, or does it still feel premature?