Brazil’s Largest Asset Manager Carves Crypto’s Mainstream Path

Itaú Asset Management, Brazil’s largest private asset manager, has launched a dedicated crypto division, marking a significant step in the integration of digital assets into the mainstream financial ecosystem. The division, led by João Marco Braga da Cunha, a former portfolio management director at Hashdex, will focus on developing a range of crypto products, including fixed-income instruments, derivatives, and staking-based funds, all operating under the firm’s mutual funds framework. Itaú, which manages over 1 trillion reais in assets, has already offered direct trading of 10 cryptocurrencies through its mobile app and launched a Bitcoin ETF in recent years, signaling a long-standing commitment to the digital asset space [1].

The launch of the new division builds on a broader shift within Itaú Unibanco, which in December 2023 began offering crypto trading for retail clients. This move aligns with Brazil’s growing appetite for digital assets, which has positioned the country as a global leader in crypto adoption. According to Chainalysis’ 2024 Global Crypto Adoption Index, Brazil ranks 10th globally, a position driven by a supportive regulatory environment. In 2023, the country enacted its first comprehensive crypto law, which established regulatory oversight for virtual asset service providers and granted the central bank authority over the sector [1].

The regulatory environment, however, remains a subject of scrutiny. In June 2024, Brazil introduced a tax reform that imposed a flat 17.5% tax on all crypto capital gains, eliminating previous exemptions for small transactions and self-custody. The policy faced immediate backlash and was later revoked, highlighting the ongoing need for regulatory clarity. Analysts note that such policy shifts can influence investor confidence and market stability. The introduction of the first spot XRP ETF in February 2025, approved by Brazil’s securities regulator, further illustrates the nation’s progressive approach to crypto innovation [1].

Itaú’s foray into crypto is also part of a larger trend in Latin America, where crypto adoption is accelerating across the region. Brazil leads the continent in crypto ownership, with 18.6% of its population holding digital assets, followed by Argentina and El Salvador. The fastest growth in crypto adoption is occurring in Bolivia, Guatemala, and Paraguay, driven by expanding access and necessity-driven demand. In addition to retail adoption, stablecoins are increasingly being integrated into commerce, with Visa recently partnering with a Stripe subsidiary to enable stablecoin-linked payments across Argentina, Colombia, Ecuador, Mexico, Peru, and Chile [2].

Despite regulatory challenges and media traffic declines for crypto-native outlets in Latin America, institutional interest and infrastructure development continue to grow. Brazil, in particular, has become a focal point for crypto innovation, with major banks and fintechs expanding their digital asset offerings. Itaú’s new division is expected to further accelerate the integration of crypto into traditional investment structures, offering a model for other financial institutions seeking to navigate the evolving digital asset landscape [1].

Source: [1] Brazil's Largest Asset Manager Itaú Asset Forms Dedicated Crypto Division (https://cointelegraph.com/news/brazil-asset-manager-itau-asset-dedicated-crypto-unit) [2] LATAM crypto media traffic halved QoQ despite adoption growth—Brazil drives 62% of the audience (https://www.fxstreet.com/cryptocurrencies/news/latam-crypto-media-traffic-halved-qoq-despite-adoption-growth-brazil-drives-62-of-the-audience-202509051537)