On October 9, 2025, the Luxembourg Intergenerational Wealth Fund (FSIL) officially confirmed that it would invest 1% of its total assets in a Bitcoin Exchange Traded Fund (ETF). This is the first sovereign fund in the Eurozone to boldly Capital in this type of digital asset — a move that experts have described as “opening a wave of national Bitcoin investments in Europe.”
According to the latest announcement, FSIL is allowed to allocate up to 15% of its assets to alternative investments such as cryptocurrencies, Venture Capital and emerging financial technologies. The move reflects a shift in the investment mindset of sovereign funds — from traditional asset preservation strategies to long-term growth strategies based on technological innovation.
Established in 2014, FSIL has a mission to “build and protect the wealth of Luxembourg’s future generations.” With a total value of approximately $730 million, the majority of the fund’s portfolio previously focused on high-quality bonds and stable financial products.
However, given the strong growth of Bitcoin and digital assets, FSIL decided to diversify its portfolio. Choosing a Bitcoin ETF — rather than buying Bitcoin directly — helps the fund comply with strict EU regulations while reducing the risk of custody of digital assets.
According to a source at the Luxembourg Finance Ministry, the decision was made after months of market research and reference to the models of other sovereign wealth funds, such as Norges Bank (Norway) and GIC (Singapore), which are also XEM expanding their portfolios to digital assets.
