Luxembourg Invests in Bitcoin via Sovereign Wealth Fund
Luxembourg has become the first Eurozone country to invest in Bitcoin through its sovereign wealth fund. The Intergenerational Sovereign Wealth Fund (FSIL) allocated 1% of its holdings to Bitcoin exchange-traded funds (ETFs). Finance Minister Gilles Roth announced this during the 2026 Budget presentation in parliament.
Jonathan Westhead from the Luxembourg Finance Agency said the investment follows the fund’s new plan approved in July 2025. He added, “Recognizing the growing maturity of this new asset class, and underlining Luxembourg’s leadership in digital finance, this investment is an application of the FSIL’s new investment policy.”
New Investment Strategy for FSIL
Established in 2014, the FSIL manages about $730 million in assets. Most funds are invested in safe, high-quality bonds. The new plan allows up to 15% of assets in alternative investments like private equity, real estate, and digital assets such as Bitcoin.
Westhead explained the fund chose Bitcoin ETFs to simplify the process and reduce risk. He said the 1% allocation balances innovation with caution. “Some might argue that we’re committing too little too late; others will point out the volatility and speculative nature of the investment,” he said. “Yet, given the FSIL’s profile and mission, the management board concluded that 1% strikes the right balance while signaling Bitcoin’s long-term potential.”
Growing Crypto Presence in Luxembourg
Luxembourg is also attracting major crypto firms. According to a Luxembourg Times report, Coinbase plans to expand its local team to 40 employees by 2026. The country will serve as Coinbase’s European crypto hub under the MiCA regulation.
Interest in Bitcoin ETFs continues to rise globally. BlackRock’s IBIT ETF holds over 800,000 BTC, valued at $97 billion. This represents 3.8% of Bitcoin’s total supply. According to CoinMarketCap, Bitcoin was trading at $121,818 with a 24-hour volume of $58.4 billion. The cryptocurrency fell 0.60% in the last 24 hours.
Luxembourg’s investment marks a shift. Bitcoin is now recognized beyond crypto enthusiasts. Governments are increasingly viewing digital assets as part of finance’s future.
