Itaú Asset Management recommends Bitcoin allocation for diversification
- Itaú Asset Management suggests investors hold between 1% to 3% of their portfolios in Bitcoin.
- The recommendation is based on current geopolitical tensions, monetary policy shifts, and currency risks.
- Despite Bitcoin’s volatility, which saw it fluctuate from $95,000 to an all-time high of $125,000, a small allocation can help mitigate risks.
- Brazilian investors experienced heightened volatility due to the Brazilian real strengthening by approximately 15%.
- Itaú’s internal data indicates a low correlation between its locally listed Bitcoin ETF, BITI11, and other major asset classes.
- In September, Itaú launched a dedicated crypto unit aimed at expanding its digital asset offerings.
The suggestion from Itaú Asset highlights the potential benefits of adding Bitcoin as a complementary asset in investment portfolios amidst ongoing market uncertainties.
By allocating 1% to 3% in their portfolios, investors could leverage Bitcoin’s unique dynamics for better diversification and risk management.(Source)
