Itaú, Brazil’s largest private bank, has reiterated its recommendation that investors allocate between 1% and 3% of their portfolios to Bitcoin in 2026, despite the asset’s decline this year. In a detailed research note, the bank highlighted Bitcoin’s role as a diversification tool and a hedge against currency risk.

The report, authored by analyst Renato Eid, argues that Bitcoin behaves differently from traditional assets such as equities, fixed income, or local markets due to its global and decentralized structure. Although volatility remains high, Itaú believes Bitcoin continues to offer long-term upside potential and has become a relevant component for portfolios exposed to economic uncertainty and geopolitical tensions.

Itaú noted that Bitcoin’s weak performance in 2025 was amplified for Brazilian investors by currency movements. While the price in U.S. dollars is down about 3.5% year-to-date, losses measured in Brazilian reais reach roughly 16.2% due to the strengthening of the local currency. The bank stressed that the greater risk may lie in having no exposure at all.

The bank offers Bitcoin exposure via its Íon platform or through the BITI11 ETF listed on Brazil’s B3 exchange, allowing investors to access the asset without dealing directly with custody. Itaú recommends a disciplined, long-term approach with periodic rebalancing, emphasizing that Bitcoin should act as a complement rather than a core holding in a balanced portfolio.