$198B Brazil Asset Manager Plans Expansion Into Crypto ETFs

Brazil’s Itaú Asset Management is stepping decisively into the digital asset space. With nearly $198 billion under management, the firm has launched a dedicated crypto division focused on Crypto ETFs, Mutual Funds, and Custody Offerings. Beyond the headline products, Brazil Itaú is exploring fixed-income style crypto funds, derivatives, and staking-based investments, aiming to integrate digital assets into investment vehicles that both retail and institutional investors already understand.

Custody Offerings Simplify Crypto Investing

The approach combines scale, expertise, and accessibility. By offering Custody Offerings in-house, Brazil Itaú reduces one of the biggest barriers to entry for institutional investors: trust and security. Retail clients gain the ability to invest in Bitcoin, Ether, Solana, and USD Coin directly through the bank’s app, without worrying about third-party wallets or complex setup. The division operates within Itaú’s existing Mutual Funds framework, which oversees more than 117 billion reais across 15 desks, giving crypto products immediate operational support and credibility. Leadership matters too. João Marco Braga da Cunha, formerly with Hashdex, brings deep crypto experience, bridging the gap between fintech innovation and traditional asset management.

Clarity Boosts Institutional and Retail Crypto ETFs Adoption

Brazil’s 2023 Cryptoassets Act and the Central Bank’s regulatory oversight have established a clearer legal framework for digital assets. Institutional investors now have a regulated path to enter the market, and retail investors gain safer access. Brazil ranks 10th in the 2024 Global Crypto Adoption Index, suggesting a strong appetite for digital assets. Itaú’s move could accelerate adoption by combining familiar banking services with the accessibility of crypto investing.

Global Crypto ETF Success Highlights Strong Market Demand

BlackRock’s spot Bitcoin ETF attracted $1 billion in just four days and surpassed $70 billion in under a year, becoming the fastest-growing ETF ever. Fidelity’s spot Bitcoin and Ether ETFs drew $1.07 billion and $874.6 million in their first week. These results show that demand is enormous once products are simplified, regulated, and offered through trusted channels. Brazil Itaú appears to be following this template locally, creating Crypto ETFs and Mutual Funds designed for a market ready to adopt them.

New Crypto Strategies Include Staking Funds and Derivatives

The combination of traditional fund structures and digital assets also opens the door for new strategies. Investors can now tap into crypto products that feel familiar, like bond-style instruments and staking funds that generate yield. There are also more advanced derivatives available. Custody offerings keep these innovations safe and compliant. This helps reduce the risks that often make institutions hesitant to enter the market.

This move could reshape Brazil’s financial landscape. Other Latin American banks will likely observe and replicate if successful. By offering Crypto ETFs, Mutual Funds, and Custody Offerings at scale, Brazil Itaú is signaling that crypto is not a fringe product anymore. At Brazil, it’s becoming an established asset class. This integration makes digital assets accessible, regulated, and credible, changing how both individuals and institutions view crypto investment.