How Investors Should Allocate in Bitcoin: Recommendations from Brazil's Largest Asset Manager

Itaú Asset Management, Brazil’s leading private asset manager, has issued a strategic recommendation for investors to allocate between 1% and 3% of their portfolios in Bitcoin. This guidance arises in a context of increasing volatility in global markets and the Brazilian exchange rate, requiring investors to seek additional protection within their portfolios.

Moderate Allocation: Why 1% to 3% in Bitcoin Makes Sense

Renato Eid, responsible for beta strategies and responsible investment at Itaú Asset Management, argued that Bitcoin shows independence from the movement of traditional local assets, making it a useful diversification tool. The suggested proportion of 1% to 3% reflects a balanced approach, without turning cryptocurrencies into the core of the portfolio.

“The idea is not to make crypto assets the center of the investment strategy, but to include them as a complementary component — scaled to each investor’s risk profile,” Eid explained. This philosophy aims to provide access to global returns while prioritizing wealth preservation.

Diversification in Times of Currency Uncertainty

For Brazilian investors, currency dynamics intensify challenges. Products like BITI11, an exchange-traded fund that replicates Bitcoin’s performance in Brazil, suffered significant impacts due to the real’s devaluation. However, during periods of economic stress at the end of 2025, Bitcoin’s global nature provided relative protection.

Investing in Bitcoin acts as a buffer against simultaneous currency and market shocks. This mechanism becomes particularly relevant when traditional correlations between assets fail, and investors need an anchor that does not depend solely on the domestic scenario.

Long-Term Discipline Outperforms Market Timing Attempts

Eid warned against trying to predict the exact timing to enter or exit the market. In 2025, Bitcoin experienced a volatile trajectory—spiking near $125,000 before retreating to around $90,000—highlighting the risk of reactive decisions.

According to the recommendation, investors should establish a “strategic slice” (for example, 1% to 3%) and maintain it through market cycles, without reacting to short-term “noise.” This disciplined mindset reduces behavioral risk and aligns investors with their long-term goals.

Alignment with Other Major Managers

Itaú Asset Management’s recommendation aligns with recent guidance from other market giants. In early January, Bank of America authorized wealth advisors to suggest allocations in Bitcoin of up to 4%, while BlackRock indicated a 2% allocation. These guidelines reinforce the growing consensus among institutional investors that Bitcoin deserves a place in modern diversification.

The Current Price and Investment Reality

With Bitcoin trading at $77.84K, the cost of a 1% to 3% allocation remains accessible for most middle- and high-income investors. The recommendation emphasizes that this exposure should not be viewed as a speculative bet but as a defensive component offering hedging against macroeconomic risks.

For investors willing to follow a disciplined strategy, Itaú Asset Management’s suggestion provides a practical roadmap: start small, stay consistent, and resist emotional market pressures. This approach transforms Bitcoin from an exotic asset into a conventional wealth protection instrument.