Banco do Brasil, one of the largest financial institutions in Latin America, with an impressive management of US$400 million in assets, has just added bitcoin to its portfolio. This move marks a significant point in the adoption of cryptocurrencies by large traditional banks in the region.
According to Eric Balchunas, renowned ETF analyst at Bloomberg, Grupo Banco do Brasil now has US$1,5 million in IBIT, a fund managed by BlackRock, specializing in bitcoin. This move is not isolated, considering that VP Bank AG, based in Liechtenstein and focused on private banking, holds half a million in similar assets.
Interestingly, in the North American scenario, FBTC, with notable investors such as the Baldwin brothers — including actor Stephen Baldwin and Alec Baldwin — records just US$17.000 in investments. Alec Baldwin, a well-known cryptocurrency enthusiast from previous cycles, now sees a large Brazilian bank following the crypto adoption trend.
The inclusion of bitcoin by Banco do Brasil is probably intended to diversify its clients' portfolios, a strategy similar to that adopted by North American banks such as JP Morgan, which have already included GBTC, a bitcoin exchange-traded fund, in management previous ones.
Eric Balchunas comments that Banco do Brasil's current exposure to cryptocurrencies, representing just 0,2% of shares, is just “the tip of the iceberg”. He highlights that other ETFs, such as BITO, have 42% of their shares reported through form 13F, signaling growing interest and more robust adoption in traditional finance.
This new stage for Banco do Brasil reflects a growing trend towards the integration of cryptocurrencies into the conventional financial system, promising new developments and possibly influencing other institutions to explore cryptocurrencies as a viable investment option.