Banco do Brasil Invests in Bitcoin and Marks Presence in the Cryptocurrency Market

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 via 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.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.