The Brazilian banking giant offers investment advice to clients for Bitcoin
Tita Union's Syama San, the largest private bank in Latin America, advised STEFLONE to add 3% of its portfolio to Bitcoin until 2026.
The bank is not a corruption of corruption, but as a hedge against the real erosion of Brazil.
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Why do customers want money in Bitcoin?
Analysts predicted in the ST strategy note said that investors will face two concerns from international price instability and domestic currency volatility. It is argued that these conditions require a new approach to portfolio construction.
The bank recommends 1% to 3% of Bitcoin's weight, which is not reflected in domestic cycles.
Bitcoin [is] An asset with fixed income, traditional stocks or local markets, with its own flexibility, return potential, and – due to its international and appropriate nature, an asset called “block function of the period”.
Bitcoin should not continue to hold sway. Instead, the bank has opened an adjusted derivative classification as a counterparty risk profile.
The objective is to model the returns of the entry linked to the domestic economic cycles. It also aims to maintain exposure for long-term appreciation.
The bank pointed out the relatively low correlation between Bitcoin and traditional asset classes. He argued that 1 to 3% of the investment can continuously improve the overall portfolio risk.
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The note said that the approach is not a short-term price consolidation, but requires a medium, disciplined, and long-term horizon.
The bank warned that assets such as Bitcoin or other global markets are often successful in “trying to perfect timing”.
The 3% ceiling of ITAUS narrows the gap in the American counterpart in accordance with the international guidelines and gives them all in front.
Major American companies such as Morgan Stanley and America recommend that their clients receive 4% of their assets in digital assets.
However, for Brazilian investors, the situation is different.
Ethio in economic cycles and often external stores, Bitcoin “makes a “double character” in addition to traditional resources.
The bank's flash offering is blurred as part high risk exposure and part international value. It is argued that this combination has the ability to withstand that a fixed income is no longer guaranteed.
