Luxembourg has made headlines by becoming the first country in the Eurozone to invest in Bitcoin using its sovereign wealth fund.
On October 9, Finance Minister Gilles Roth revealed that Luxembourg’s Intergenerational Sovereign Wealth Fund (FSIL) would dedicate 1% of its portfolio to Bitcoin exchange‑traded funds (ETFs).
Under the fund’s newly updated mandate (approved in July 2025), the FSIL can now allocate up to 15% of its assets toward alternative investments, including cryptocurrencies, real estate, and private equity.
Roth emphasized that the move reflects confidence in digital assets’ maturation while preserving regulatory standards.
Rather than acquiring Bitcoin directly, Luxembourg chose to access exposure via regulated ETFs, a strategy meant to limit operational and custody risks.
As of mid‑2025, FSIL’s assets under management stood around €764 million, suggesting the 1% allocation corresponds to roughly €7 million (or about $9 million) in Bitcoin ETF exposure.
“This allocation sends a clear message about Bitcoin’s long‑term potential while maintaining balance,” said Bob Kieffer, Luxembourg’s Director of the Treasury.
Luxembourg’s move distinguishes it from other European countries that hold Bitcoin only through seized assets rather than proactive institutional allocations.
Luxembourg among a small group of nations, such as El Salvador, experimenting with sovereign‑level Bitcoin exposure.
By entering the Bitcoin ETF space, Luxembourg sets a precedent for European sovereigns, aligning its financial policy with the region’s evolving digital asset landscape.