Itaú Asset Management, Brazil’s largest privately-owned asset manager, recommends investors allocate 1% to 3% of their portfolios to bitcoin (BTC) due to its lack of correlation with traditional local assets, making it a useful diversification tool. This echoes similar recommendations from major asset managers like Bank of America (up to 4% BTC allocation) and BlackRock (2% BTC allocation). Renato Eid, head of beta strategies at Itaú, emphasizes a measured approach, using crypto as a complementary asset to absorb shocks from currency depreciation and global volatility, rather than making it the core of a portfolio. Bitcoin’s global nature provides some insulation during periods of stress, offering access to global returns. Eid advises against trying to time the market and suggests a disciplined, long-term mindset for a small, steady exposure to bitcoin as a partial hedge.

Read more at Yahoo Finance: Brazil’s Largest Asset Manager Recommends Investors Put Up to 3% of their Money in Bitcoin to Hedge Against FX, Market Shocks