A senior executive at Itaú Asset Management has recommended that investors allocate between 1% and 3% of their portfolios to Bitcoin (CRYPTO:BTC) as part of a diversified strategy.
Itaú Unibanco is the largest private bank in Latin America and a key player in Brazil's traditional financial system.
The recommendation was made by Renato Eid, head of beta strategies and responsible investment at Itaú Asset Management, in a recent research note.
Eid described Bitcoin as a “dual opportunity” that combines diversification benefits with protection against currency devaluation.
He warned investors against attempting to time the market and instead encouraged maintaining a long-term investment horizon.
“The idea is not to make crypto assets the core of the portfolio, but to integrate them as a complementary component,” Renato Eid said.
He added that Bitcoin can help capture returns that are less correlated with domestic economic cycles while offering long-term appreciation potential.
The note emphasised Brazil's ongoing currency volatility as a key reason to consider globally priced assets.