## How Brazil's Largest Financial Institution is Integrating Bitcoin into Wealth Management Strategy

Brazil's largest private bank has taken a significant step toward institutional adoption of cryptocurrencies. In December 2025, Itaú Asset Management issued a research note advising its clients to allocate between 1 and 3 percent of their portfolios to Bitcoin during 2026. This recommendation signals a tangible shift in how traditional Brazilian finance is reevaluating the role of digital assets in conservative investment strategies.

## Why Bitcoin is Gaining Credibility Among Brazilian Institutions

Bitcoin's volatility in 2025 provided an interesting context for this strategic move. The asset fluctuated between $80,000 and $125,000 throughout the year, but according to the latest available data, the price is around (90.68K). Renato Eid, a prominent figure at Itaú Asset, highlighted how geopolitical tensions and currency risks are concrete motivations behind this recommendation.

For Brazilian investors, there is a particular issue: the Brazilian real appreciated by 15 percent in 2025, significantly amplifying losses for those holding Bitcoin. This scenario prompted the bank to position Bitcoin not as a speculative asset but as a tool for protection against currency devaluation in the long term and as a hedge against geopolitical dynamics affecting traditional markets.

## Quantitative Evidence Supporting the Allocation

Internal data from Itaú Asset revealed a crucial fact: the bank's Bitcoin ETF BITI11 shows minimal correlation with Brazilian and international market indices. This characteristic makes it especially useful for those seeking to diversify risk during broad market downturns.

The global landscape supports this strategy. According to AInvest, 76 percent of international investors planned to expand their exposure to digital assets in 2025, with nearly 60 percent planning allocations exceeding 5 percent. Bank of America has issued similar recommendations, suggesting allocations between 1 and 4 percent for clients with significant wealth.

Prestigious universities have also taken steps in this direction. Harvard increased its position in BlackRock's Bitcoin ETF to $443 million in Q3 2025, representing a 257 percent increase in its holdings during that period and the university's largest publicly disclosed position.

## Expansion of Crypto Infrastructure Among Traditional Financial Actors

Itaú formalized its commitment to the sector by creating an autonomous division dedicated to cryptocurrencies in September 2025. João Marco Braga da Cunha, a former executive at Hashdex, was appointed to lead this new strategic unit. The division is not limited to replicating existing products but is developing a wide range of solutions spanning fixed income securities, derivatives, and staking strategies.

This approach reflects a broader global trend. The spot Bitcoin ETF sector accumulated over $65 billion in assets under management by April 2025, with BlackRock's IBIT product dominating the market, reaching nearly $75 billion in net assets. Traditional banks and wealth managers are now actively competing to offer exposure to cryptocurrencies even to their more cautious and conservative investors.

Itaú Asset's move reflects a paradigm shift: Bitcoin is no longer perceived solely as a speculative asset but is gaining legitimacy as a structural component of portfolios built with prudence.