Itaú Unibanco Holding S.A. (ITUB) has advised savers in Latin America to consider allocating 1% to 3% of their portfolios to Bitcoin, marking a significant shift in traditional finance advice. This recommendation from Itaú Asset Management is part of a broader approach to diversify asset holdings amid evolving market conditions. The bank has offered Bitcoin and Ethereum trading for clients since 2021 and launched Bitcoin exchange-traded funds (ETFs) in 2020.
Renato Eid, head of beta strategies at Itaú, highlighted Bitcoin’s decentralized nature as beneficial for portfolio diversification and as a hedge against currency volatility. The bank plans for clients to gain Bitcoin exposure primarily through regulated investment vehicles, such as its own spot Bitcoin ETF, BITI11. Although the 1-3% allocation is modest, it could result in significant investments across large wealth pools, reflecting an increasing institutional acceptance of cryptocurrencies in investment strategies.
A parallel trend is observed among major financial institutions like Bank of America (BAC) and BlackRock (BLK), both of which are beginning to allow small crypto allocations for their clients, further legitimizing digital assets within diversified portfolios.
