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Luxembourg’s Sovereign Wealth Fund Allocates 1% of Portfolio to Bitcoin ETFs

09.10.2025 15:16 1 min. read Kosta Gushterov
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Luxembourg’s Sovereign Wealth Fund Allocates 1% of Portfolio to Bitcoin ETFs

Luxembourg has become the first Eurozone nation to allocate part of its sovereign wealth fund to Bitcoin, with officials confirming a 1% investment into regulated Bitcoin exchange-traded funds (ETFs).

The move was revealed by Finance Minister Gilles Roth during the presentation of the 2026 national budget, marking a historic milestone for one of Europe’s most established financial centers.

The decision was made under the new investment policy of the Intergenerational Sovereign Wealth Fund (FSIL), which aims to diversify long-term reserves for future generations.

“Recognizing the growing maturity of this asset class, and underlining Luxembourg’s leadership in digital finance, this investment reflects FSIL’s new investment framework,” said Jonathan Westhead, a representative of the Luxembourg Finance Agency.

A Conservative but Symbolic Entry Into Bitcoin

The 1% Bitcoin allocation represents a cautious yet strategic step for the $730 million FSIL portfolio, which traditionally holds high-quality bonds and equities. Under its revised guidelines, the fund can now place up to 15% of its assets in alternative investments, including private equity, real estate, and digital assets.

To minimize operational risk, Luxembourg opted for exposure via Bitcoin ETFs rather than holding the asset directly, a move seen as a prudent balance between innovation and stability.

“Some may see 1% as small or late,” Westhead said, “but for the FSIL’s mission and risk profile, this level strikes the right balance while signaling confidence in Bitcoin’s long-term potential.”

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.

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