Brazil's Itaú Asset Management Recommends 3% Bitcoin Allocation for Portfolio Diversification

Itaú Asset Management, Brazil's largest asset manager, recommended on Dec. 14 that investors allocate 3% of their portfolios to Bitcoin as a hedge against foreign-exchange and broader market shocks, BlockBeats reports. The firm cited Bitcoin's relatively low correlation with traditional local assets as a diversification benefit and advised a disciplined, long-term investment approach without timing the market. The guidance aligns with recommendations from other major asset managers, as a U.S. bank earlier this month allowed wealth advisers to suggest up to a 4% Bitcoin allocation, while BlackRock proposed a 2% allocation.