Luxembourg Bets On Bitcoin As Sovereign Fund Adds 1% Exposure To BTC ETFs

In an announcement made yesterday, Luxembourg’s Finance Minister disclosed that the European nation’s Intergenerational Sovereign Wealth Fund (FSIL) is about to allocate 1% of its complete portfolio to Bitcoin (BTC) exchange-traded funds (ETFs) and different cryptocurrencies.

Luxembourg Wealth Fund Invests In Bitcoin

In a significant nod of approval for Bitcoin as a mainstream asset, Luxembourg’s FSIL is poised to take a position as a lot as 1% of its complete portfolio – price barely greater than $9.5 million – into BTC ETFs and different digital belongings.

The growth makes FSIL the primary state-level Eurozone fund to spend money on cryptocurrencies, a consultant for the Agency for the Development of Luxembourg’s Financial Centre mentioned. Bob Kieffer, Director of the Treasury, Luxembourg, mentioned:

Recognizing the rising maturity of this new asset class, and underlining Luxembourg’s management in digital finance, this funding is an software of the FSIL’s new funding coverage, which was accredited by the Government in July 2025.

Although different European international locations, equivalent to Finland, Germany, and the UK, additionally maintain a big quantity of BTC, most of these holdings stem from prison seizures. Only Georgia holds 66 BTC solely for funding functions, knowledge from Bitbo reveals.

According to the newest knowledge, the US continues to carry the very best quantity of BTC amongst all international locations around the globe. The US is adopted by China, UK, Ukraine, Bhutan, and El Salvador.

Kieffer emphasised that the FSIL won’t straight maintain any BTC, citing “operational dangers.” Instead, the fund has opted to achieve oblique publicity to BTC by ETFs. He additionally mentioned that 1% allocation strikes the fitting steadiness, sending the message about BTC’s long-term potential.

It is price highlighting that beneath the revised pointers, the FSIL is allowed to take a position as a lot as 15% of its complete portfolio into “various investments,” together with digital belongings. As of June 2025, the FSIL held complete belongings price practically $730 million, most of it being high-quality bonds.

Countries Ramping Up BTC Holdings

While BTC accumulation was largely restricted to firms till a number of years again, international locations like El Salvador spearheaded sovereign adoption of Bitcoin, igniting a development that’s now spreading the world over at a speedy tempo.

Notably, considered one of US President Donald Trump’s main marketing campaign guarantees was to determine a strategic Bitcoin reserve. Senator Cynthia Lummis just lately gave an update in regards to the reserve, saying that it may possibly “begin anytime.”

Several different international locations have expressed willingness to determine their very own strategic Bitcoin reserves. For occasion, in May 2025, the Brazilian chief of employees to the Vice President reaffirmed plans so as to add BTC to the nation’s sovereign reserves.

Similarly, India’s ruling celebration BJP’s spokesperson, called for a strategic Bitcoin reserve pilot in July. At press time, BTC trades at $120,809, down 2.5% prior to now 24 hours.