Brazil's largest asset management company suggests investors allocate 3% of their funds to Bitcoin

Brazil's largest asset management company, Itaú Asset Management, recommends that investors allocate 3% of their funds to Bitcoin to hedge against foreign exchange and market shock risks, citing that Bitcoin has a low correlation with traditional local assets, making it a useful diversification tool.

Itaú states that there is no need to time the market and suggests adopting a disciplined long-term investment strategy. Itaú Asset Management's recommendation aligns with the Bitcoin allocation ratios suggested by other major asset management companies. Earlier this month, Bank of America approved wealth advisors to recommend a maximum Bitcoin allocation of 4%, while BlackRock suggested a ratio of 2%.