Luxembourg Becomes First Eurozone Nation to Invest in Bitcoin Through Sovereign Wealth Fund
Luxembourg’s Intergenerational Sovereign Wealth Fund (FSIL) has turn out to be the primary state-level fund in the Eurozone to make investments in Bitcoin, allocating 1% of its holdings to Bitcoin exchange-traded funds (ETFs).
Bob Kieffer, Luxembourg’s Director of the Treasury and Secretary General, introduced the transfer in an October 8 LinkedIn post.
Kieffer famous that Finance Minister Gilles Roth had revealed the choice earlier in the course of the presentation of the 2026 Budget on the Chambre des Députés, Luxembourg’s legislature.
“Under the revised framework, the FSIL will proceed to make investments in fairness and debt markets, whereas now additionally being approved to allocate up to 15% of its property to different investments,” Kieffer defined.
These embrace personal fairness, actual property, and crypto property.
Conservative or Bold? Inside Luxembourg’s 1% Bitcoin Allocation
To decrease operational dangers, the fund’s Bitcoin publicity shall be managed by means of regulated ETFs quite than direct holdings.
With complete property beneath administration of approximately €764 million (about $888 million) as of June 30, the 1% allocation places roughly $9 million into Bitcoin ETFs.
Kieffer addressed the combined reactions to the transfer, acknowledging that opinions fluctuate on each timing and scale.
“Some may argue that we’re committing too little too late; others will level out the volatility and speculative nature of the funding,” he wrote.
However, he burdened that the FSIL administration board views the 1% allocation as a smart steadiness between innovation and stability.
The determination, in accordance to Kieffer, displays confidence in Bitcoin’s long-term potential whereas staying in step with the fund’s conservative funding method.
Luxembourg Flagged Crypto as High-Risk—Then Invested Anyway
The announcement might shock these accustomed to Luxembourg’s historically cautious stance towards cryptocurrencies.
It follows earlier reports from late May indicating that the nation’s 2025 National Risk Assessment had categorised crypto-related companies as high-risk for cash laundering.
The report famous that Virtual Asset Service Providers (VASPs) typically function in decentralized environments, which complicates oversight and makes tracing illicit monetary actions more difficult.
Yet Luxembourg continues to appeal to main crypto gamers searching for regulatory approval.
In May, Bitstamp, one of many world’s longest-running cryptocurrency exchanges, secured its Crypto Asset Service Provider (CASP) license from Luxembourg regulators beneath the European Union’s Markets in Crypto-Assets (MiCA) framework.
In January, UK-based Standard Chartered announced plans to set up a Luxembourg-based entity as its regulatory hub for crypto and digital asset custody companies throughout the European Union.
Coinbase has additionally expanded its European presence, acquiring a license beneath the EU’s MiCA regulatory framework by means of Luxembourg’s monetary regulator, solidifying the nation’s place as a compliant hub for digital property.
Breaking Down National Bitcoin Holdings Around the World
Data from Bitcoin Treasuries exhibits that, past Europe, nation-states and authorities entities collectively maintain about 515,885 Bitcoin, valued at roughly $63 billion, representing round 2.46% of Bitcoin’s complete provide.
The United States leads with 198,021 BTC value roughly $24.2 billion, adopted by China with 190,000 BTC valued at $23.2 billion, a lot of it seized through enforcement actions regardless of China’s restrictive crypto insurance policies.
The United Kingdom ranks third with 61,245 BTC (round $7.5 billion), whereas Ukraine holds 46,351 BTC valued at $5.7 billion, reflecting its reliance on crypto donations amid ongoing battle and its progressive method to digital property.
El Salvador stays the one nation to have adopted Bitcoin as legal tender, holding 6,344 BTC value $776 million, making it a world outlier in crypto-based financial coverage.
Both the United Arab Emirates and Bhutan maintain greater than 6,000 BTC every, exhibiting a development amongst each resource-rich and rising nations to deal with Bitcoin as a strategic reserve asset.
Bhutan authorities strikes $23.73M Bitcoin to Binance completely timing $BTC‘s $112K ATH, sustaining large 11,711 $BTC value $1.3B with superior market technique.#Bhutan #Bitcoinhttps://t.co/ghEZF0AnO8
— Cryptonews.com (@cryptonews) July 10, 2025
Several international locations, together with Finland, Roswell in New Mexico, Germany, and Bulgaria, now have zero or minimal holdings after liquidating their positions.
The submit Luxembourg Becomes First Eurozone Nation to Invest in Bitcoin Through Sovereign Wealth Fund appeared first on Cryptonews.
