A Luxembourg Sovereign Wealth Fund has invested a 1% spread of its holdings in Bitcoin ETFs, making it the first state -level fund in the euro area to do so, according to a representative of the Agency for Developing the Luxembourg Financial Center.
The European nations Finland, Georgia and the UK also have bitcoin, although most of this crypto is derived from criminal seizures, according to Bitbo, with the exception of Georgia, a nation outside the euro area that owns 66 BTC for investment purposes.
During his presentation of the 2026 budget at the Chambre des Députés, Luxembourg -Finance Minister Gilles Roth revealed that the European nations’ intergenerational sovereign wealth fund (FSIL) has invested 1% of his stocks in Bitcoin.
“Recognizing the growing maturity of this new asset class and emphasizes Luxembourg’s leadership in digital funding, this investment is a use of FSIL’s new investment policy approved by the government in July 2025,” said Jonathan Westhead, communications leading for Luxembourg Finance Agency -Representatively via e email.
Luxembourg, one of the least populated countries in Europe (682,000 approx.) Introduced its intergenerational SOVEREIGN Fund (FSIL) back in 2014, intended to build a reserve for future generations. The fund has a modest $ 730 million of assets, most of which are in high quality bonds.
According to the revised framework, FSIL will continue to invest in equity and debt markets, while it is now also authorized to award up to 15% of its assets for alternative investments. These include private equity and real estate as well as crypto assets. To avoid operational risks, the exposure to Bitcoin has been taken through a selection of ETFs, Westhead said.
Some might argue that we commit to too little too late; Others will point out the volatility and the speculative nature of the investment. Nevertheless, considering FSIL’s special profile and mission, the Fund’s management committee concluded that a 1% allocation strikes the right balance while sending a clear message about Bitcoin’s long -term potential. Obviously, what is right for FSIL may not be right for other investors, ”he said.
