A Luxembourg sovereign wealth fund has invested a 1% slice of its holdings in Bitcoin ETFs, making it the first public fund in the euro zone to do so, according to a representative of the Agency for the Development of the Luxembourg Financial Center.
The European countries of Finland, Georgia and the United Kingdom also hold bitcoin, although most of this crypto comes from criminal seizures, according to Bitbo, with the exception of Georgia, a country outside the eurozone that owns 66 BTC for investment purposes.
During his presentation of the 2026 budget to the Chamber of Deputies, Luxembourg Finance Minister Gilles Roth revealed that the European nation’s Sovereign Intergenerational Fund (FSIL) had invested 1% of its assets in Bitcoin.
“Recognizing the growing maturity of this new asset class and highlighting Luxembourg’s leadership in digital finance, this investment is an application of the new FSIL investment policy, which was approved by the government in July 2025,” Jonathan Westhead, head of communications for the Luxembourg Financial Agency Representative, said by email.
Luxembourg, one of the least populated countries in Europe (around 682,000 inhabitants), launched its Intergenerational Sovereign Fund (FSIL) in 2014, intended to constitute a reserve for future generations. The fund holds a modest $730 million in assets, with most of its investments in high-quality bonds.
Under the revised framework, FSIL will continue to invest in equity and debt markets, while now also being 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 was taken through a selection of ETFs, Westhead said.
“Some will say we are committing too little, too late; others will point out the volatility and speculative nature of the investment. Yet, given FSIL’s particular profile and mission, the Fund’s board concluded that a 1% allocation is the right balance, while sending a clear message about the long-term potential of Bitcoin. Obviously, what is good for FSIL might not be good for others investors,” he said.
