Major Latin American banks see Bitcoin as a hedge against currency volatility: strategic allocation recommendation

In the current context of global monetary instability, wealth management executives at the largest financial institutions in Latin America are reevaluating their outlook on digital assets. Itaú Unibanco, positioned as the largest private bank in the region, has issued a notable stance through its investment division: allocating a significant percentage of portfolios toward Bitcoin as a defensive component.

The diversification proposal from Brazil’s most influential bank

Renato Eid, head of investment strategies and responsible management at Itaú Asset Management, has presented an analysis that challenges traditional views on cryptocurrencies. His main recommendation suggests allocating 3% of the capital designated for Bitcoin, arguing that this position does not constitute speculation but a real protective tool against the depreciation of local currencies.

This perspective reflects an important shift: institutional-level wealth managers no longer see Bitcoin solely as a volatile asset but as a legitimized component within sophisticated investment strategies. Eid’s proposal aligns with global trends where high-net-worth families—comparable in size to the historic portfolios of large fortunes like those generated during the Rockefeller era—are now considering modest yet meaningful allocations in Bitcoin.

Currency protection and dual opportunity

The core argument revolves around two simultaneous benefits: first, the genuine diversification that Bitcoin provides by being uncorrelated with traditional assets; second, currency hedging in a region where the volatility of the Brazilian real presents constant challenges.

Itaú Asset Management emphasizes that a 3% allocation represents a prudent balance point: significant enough to generate a real impact during currency stress moments, yet modest enough not to compromise the risk structure of the overall portfolio. This financial mathematics reflects the maturation of institutional analysis on cryptocurrencies.

Implications for investors in Latin America

The recommendation from the largest private sector institution in Brazil sets an important precedent. When banks of this magnitude issue specific allocation guidelines, they tend to influence decisions of both institutional investors and high-net-worth individuals who follow professional analysis.

Itaú Unibanco’s perspective suggests that Bitcoin has transitioned from being a speculative experiment to being considered a legitimate component of sophisticated portfolios—an evolution that many analysts have anticipated for years but is now materializing in public recommendations from institutions at the highest financial level.