Luxembourg's sovereign wealth fund has poured about $8 million into a Bitcoin ETF, becoming the first country in the Eurozone to invest in digital assets.
Luxembourg Sovereign Wealth Fund Allocates 1% of Portfolio to Bitcoin
Luxembourg – one of the smallest countries in Europe but with the highest GDP per capita in the world – is the next country to step into the crypto market. On October 9, the country's Intergenerational Wealth Fund (FSIL) officially announced the allocation of 1% of its portfolio (about 8 million USD) to Bitcoin through an ETF, becoming the first Eurozone country to invest state Capital in the king coin.
JUST IN: 🇱🇺 Luxembourg Sovereign Wealth Fund allocates 1% of its portfolio to spot Bitcoin ETFs pic.twitter.com/fJQViE4Zgn
— Bitcoin Archive (@BTC_Archive) October 9, 2025
Why is this news important?
- Signal of confidence: For the first time, a sovereign wealth fund in the European Union considers Bitcoin as an official investment channel.
- Domino effect: Could pave the way for other EU countries to consider including BTC in their reserve portfolio.
- Legalizing Bitcoin: Bitcoin's appearance in a country's budget report affirms the legitimacy and growing position of the king coin in the financial system.
Strategic move from FSIL
- The information was announced by Finance Minister Gilles Roth during the presentation of the 2026 budget to the Luxembourg Parliament. Accordingly, this investment is the result of a new policy framework approved by the Government in July 2025, allowing FSIL to allocate up to 15% of its portfolio to alternative assets, including real estate, private equity, and digital assets such as crypto.
- Mr. Bob Kieffer, Director of the Luxembourg Treasury, said:
“This decision reflects the growing maturity of Bitcoin as an asset class and affirms Luxembourg's pioneering Vai in digital finance.”
- In addition, to limit operational risks, the FSIL fund chooses to access Bitcoin through ETFs, instead of holding it directly.
- FSIL currently manages total assets of approximately USD 730 million, mainly invested in high-quality bonds (57%) and stocks (40%), the rest is cash (3%).
- According to the FSIL executive board, the current 1% allocation is the most balanced option: not too risky, but enough to affirm Luxembourg's pioneering position in the Eurozone.
Bitcoin in Europe and around the world
- Luxembourg became the first Eurozone country to invest in Bitcoin with national Capital . Previously, some other countries also owned Bitcoin but most of it came from confiscation of criminal assets (such as Finland, UK).
- The notable exception is Georgia, a non-Eurozone country, which currently holds 66 BTC for investment purposes.
- On a global scale, this move is reminiscent of El Salvador – a country that caused a stir when it recognized Bitcoin as legal currency and put BTC into the national treasury. Recently, El Salvador suddenly bought 21 more BTC to celebrate the 4th anniversary of “Bitcoin Day”. The total national reserves of this country are currently at 6,313 Bitcoin, worth more than 700 million USD.
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