Luxembourg sovereign fund allocates 1% to Bitcoin ETFs
Luxembourg's Intergenerational Sovereign Wealth Fund (FSIL) has allocated 1% of its $850 million holdings to bitcoin exchange-traded funds. Finance Minister Gilles Roth disclosed the allocation while presenting the 2026 budget to the Chambre des Députés.
The allocation follows a revised investment policy approved by the government in July 2025 that allows the FSIL to allocate up to 15% of assets to alternative investments, including private equity, real estate and crypto assets. It was within the framework of this policy that the FSIL management board invested in Bitcoin funds.
A 1% slice of roughly $850 million – about $8.5 million – is deliberately modest: enough to test the new mandate while keeping FSIL’s risk profile anchored in high-quality bonds and equities via broad-market ETFs.
The exposure was acquired through a selection of bitcoin ETFs to limit operational and custody risks associated with holding cryptocurrencies directly, a representative for the Agency for the Development of Luxembourg's Financial Centre explained. In an email, Jonathan Westhead, Head of Communications at Luxembourg for Finance, wrote:
The exposure was acquired through a selection of bitcoin ETFs to limit operational and custody risks associated with holding cryptocurrencies directly, a representative for the Agency for the Development of Luxembourg's Financial Centre explained. In an email, Jonathan Westhead, Head of Communications at Luxembourg for Finance, wrote:
“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, which was approved by the Government in July 2025.”
Other European countries, including Finland and the United Kingdom, hold bitcoin largely tied to criminal seizures. Georgia, which is not in the Eurozone, holds 66 BTC for investment purposes.
The FSIL was established in 2014 to build a reserve for future generations. The fund primarily invests in high-quality bonds and maintains a conservative profile, but aims to use its updated policy to expand the list of eligible asset classes.
The FSIL was established in 2014 to build a reserve for future generations. The fund primarily invests in high-quality bonds and maintains a conservative profile, but aims to use its updated policy to expand the list of eligible asset classes.
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