A Luxembourg sovereign wealth fund has invested a fraction of 1% of its holdings in Bitcoin ETFs, making it the first eurozone state fund to do so, according to a representative of the Luxembourg Financial Center Development Agency.
European nations Finland, Georgia and the United Kingdom also own bitcoin, although the bulk of those cryptocurrencies come from criminal seizures, according to Bitbo, with the exception of Georgia, a nation outside the eurozone that holds 66 BTC for investment purposes.
During his Budget 2026 presentation in the House of Representatives, Luxembourg Finance Minister Gilles Roth revealed that the European nation’s Intergenerational Sovereign Fund (FSIL) has invested 1% of its holdings in Bitcoin.
“Recognising 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, which was approved by the Government in July 2025,” said Jonathan Westhead, communications lead for the representative of the Luxembourg Financial Agency by email.
Luxembourg, one of the least populated countries in Europe (approximately 682,000), introduced its Sovereign Intergenerational Fund (FSIL) in 2014, with the aim of creating a reserve for future generations. The fund has a modest $730 million in assets, and the majority of its investments are high-quality bonds.
Under the revised framework, the FSIL will continue to invest in equity and debt markets, and will now also be allowed to allocate up to 15% of its assets to alternative investments. These include private equity and real estate, as well as crypto assets. To avoid operational risks, exposure to Bitcoin has been taken through a selection of ETFs, Westhead said.
“Some might argue that we are committing too little too late; others will point to the volatility and speculative nature of the investment. However, given the particular profile and mission of the FSIL, the Fund’s board of directors concluded that a 1% allocation strikes the right balance, while sending a clear message about the long-term potential of Bitcoin. Obviously, what is right for the FSIL may not be right for other investors,” said.
