FameEX Hot Topics | Brazil's Leading Asset Manager, Itaú, Creates Specialized Crypto Unit

Itaú Asset Management, Brazil’s largest private asset manager, has formally established a dedicated cryptocurrency division, underscoring its ambition to strengthen its role in the fast-growing digital asset market. To lead the unit, the firm appointed João Marco Braga da Cunha, a seasoned professional who previously served as portfolio management director at Hashdex, the Brazilian investment firm recognized for launching one of the country’s first crypto exchange-traded funds (ETFs). His expertise signals Itaú’s intention to combine traditional financial rigor with the innovative potential of blockchain-based assets.

The new unit will build on Itaú Asset’s existing crypto initiatives, including its own Bitcoin ETF and a retirement fund that provides exposure to digital assets. With more than 1 trillion reais ($185 billion) under management, Itaú Asset has the scale to significantly influence adoption. Cunha emphasized the segment’s appeal, noting that “crypto assets possess unique characteristics for generating alpha,” adding that the market’s volatility creates both challenges and substantial opportunities for sophisticated investors.

This development complements Itaú Unibanco’s broader digital asset strategy. In December 2023, the bank rolled out crypto trading for retail clients through its mobile app, initially offering direct access to 10 cryptocurrency pairs such as Bitcoin, Ethereum, and USD Coin. Uniquely, Itaú chose to manage custody services in-house, rather than outsourcing, a decision aimed at ensuring higher levels of security and client confidence.

Itaú Asset stated the new division will focus on developing a spectrum of investment products tailored to varying risk profiles. These will range from conservative fixed-income-style instruments to more advanced strategies, including derivatives, staking-based funds, and other vehicles designed to capitalize on crypto’s distinctive market dynamics. The unit will operate within Itaú Asset’s mutual fund framework, which already oversees more than 117 billion reais across 15 specialized investment desks.

Brazil has quickly become a global force in digital assets, ranking 10th in Chainalysis’ 2024 Global Crypto Adoption Index. This surge has been supported by favorable regulation: the country’s first comprehensive crypto law, enacted in 2023, established oversight of virtual asset providers under the central bank. With Itaú’s growing commitment, Brazil is solidifying its position as one of the world’s most dynamic markets for cryptocurrency adoption and innovation.

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