What ITUB's Bitcoin Allocation Advice Signal to Investors?

In a striking shift for traditional finance in Latin America, Itaú Unibanco Holding S.A. ITUB is now advising that savers consider holding a small allocation of Bitcoin in their investment portfolios. According to the bank’s asset management arm, Itaú Asset Management, long-term savers should aim to hold between 1% and 3% of their wealth in Bitcoin. The guidance comes as part of broader advice for investors to diversify with assets that behave differently from traditional stocks, bonds, and domestic markets.

The guidance follows nearly two years after Itaú Unibanco’s banking unit introduced Bitcoin and Ethereum trading for clients, and roughly three years after the bank launched its first Bitcoin exchange-traded funds (ETFs).

Renato Eid, head of beta strategies and responsible investment at Itaú Asset Management, emphasized Bitcoin’s unique characteristics — including its global, decentralized nature — which can provide potential diversification and a hedge against currency volatility. Eid suggested investors focus on strategic allocations and resist reacting to short-term price swings.

From an implementation standpoint, the company expects Bitcoin exposure to be accessed through regulated investment vehicles rather than direct ownership. This includes the bank’s own spot Bitcoin ETF, BITI11, which allows investors to gain exposure through a structure similar to traditional securities, offering liquidity, reporting transparency, and operational oversight.

The move reflects a broader trend of mainstream financial institutions taking digital assets more seriously, integrating them into long-term investment frameworks rather than treating them purely as speculative instruments. Although the suggested allocation remains modest at just 1–3%, even such a small exposure, when applied across large pools of wealth, could translate into meaningful inflows into spot Bitcoin ETFs. By framing the allocation as part of a long-term, diversified approach, ITUB aims to balance potential benefits with prudent risk management, signaling increased institutional confidence in the evolving role of cryptocurrencies within investor portfolios.

Other Finance Firms Move Toward Measured Crypto Allocations

A broader shift is emerging across the financial sector, with several major institutions beginning to allow limited crypto exposure within managed portfolios. Many companies, such as Bank of America BAC and BlackRock BLK, are now allowing their institutional clients access to crypto assets.

Starting January 2026, Bank of America will let its wealth advisers recommend a small crypto allocation, typically 1% to 4%, for suitable clients across Merrill, Bank of America Private Bank, and Merrill Edge. On the other hand, BlackRock has taken a more conservative approach, advocating a 1% to 2% allocation and positioning crypto as a limited diversifier focused on enhancing portfolio resilience rather than pursuing outsized returns.

Taken together, the approaches of Bank of America and BlackRock show that crypto can have a place in diversified portfolios, but the size of the allocation, liquidity, and risk management are more important than aggressive exposure.

ITUB’s Price Performance & Zacks Rank

Over the past six months, ITUB shares have gained 25.5% compared with the industry’s growth of 10.5%.

Image Source: Zacks Investment Research

Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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