Luxembourg allocates 1% of FSIL to Bitcoin ETFs

Luxembourg has become the first Eurozone nation to invest in Bitcoin through its International Sovereign Wealth Fund (FSIL). The country has allocated 1% of its FSIL $730 million holdings into Bitcoin ￰0￱ Roth, Luxembourg’s Finance Minister, announced this today during the presentation of the 2026 national budget before the Chambre des Députés. Roth revealed that the investment reflects the country’s long-term strategy to diversify its sovereign funds, per the investment policy passed in July ￰1￱ allocates 1% of FSIL to Bitcoin ETFs According to Jonathan Westhead, head of communications for the Luxembourg Finance Agency, the decision to invest 1% of the FSIL fund in Bitcoin reflected the growing maturity of the new digital asset ￰2￱ believes the country has reaffirmed its position as a leader in digital finance across the European continent as a leader in digital ￰3￱ explained that the investment was executed via Bitcoin exchange-traded funds (ETFs) to reduce risks and maintain compliance with the country’s regulatory framework for diverse investments.

BREAKING: LUXEMBOURG JUST ANNOUNCED THEY INVESTED 1% OF THEIR SOVERIGN WEALTH FUND INTO #BITCOIN WORLD'S 4th RICHEST COUNTRY BUYING ￰4￱ 🔥 ￰5￱ — The Bitcoin Historian (@pete_rizzo_) October 9, 2025 The Intergenerational Sovereign Wealth Fund (FSIL) was established in 2014 to preserve and grow national wealth for future ￰6￱ fund was primarily intended to consist of high-quality bonds, prioritizing conservative investment options. However, the latest policy revision in July allowed the fund to allocate up to 15% of its assets to alternative investment strategies such as private equities, real estate, and ￰7￱ revealed that the 1% allocations only mark the initial step towards broader exposure to other emerging digital ￰8￱ country has joined a few countries that have approached similar investment strategies worldwide, such as Georgia, which holds 66 ￰9￱ the EU region, the UK and Finland hold BTC, although through law enforcement seizures and not legitimately financed ￰10￱ has become the first nation across the EU to make a deliberate, policy-based investment effort to hold BTC via ETFs across the region.

Westhead, head of communication for Luxembourg’s Finance Agency, described the 1% allocation as appropriate to balance innovation with caution due to Bitcoin’s volatile nature. “Some might argue that we’re committing too little, too late; others will point out the speculative nature of the investment. Yet, given the FSIL’s particular mission, the management board concluded that this allocation strikes the right balance while sending a clear message about Bitcoin’s role in the future of finance.” -Jonathan Westhead, Head of Communication in Luxembourg’s Finance Agency Bitcoin ETFs have provided a more regulated form of digital asset investment, especially for traditional investors in major markets such as the ￰11￱ early this year, Bitcoin ETFs had already accumulated over $100 billion in net ￰12￱ to SoSoValu data , ￰13￱ spot ETFs currently manage approximately $168 billion in total net assets, representing 6.86% of Bitcoin’s market ￰14￱ joins sovereign countries holding BTC, such as EL Salvador Several countries worldwide have initiated state-linked funds venturing into Bitcoin ￰15￱ instance, according to BitBo data , the United States leads with over 200,000 BTC, followed by China with roughly 190K BTC in terms of countries holding BTC via state ￰16￱ countries include Ukraine, Bhutan, the UK, and El ￰17￱ state-linked funds, the ￰18￱ sovereign fund has accumulated approximately $321 million in BlackRock’s iShares Bitcoin Trust as of February.

Elsewhere, Abu Dhabi’s Mubadala Investment company disclosed a $436.9 million stake in the same ETF, while Bhutan’s Druk Holding and Investments confirmed direct Bitcoin holdings exceeding $1 billion earlier this ￰19￱ July, the Commission de Surveillance du Secteur Financier (CSSF), Luxembourg’s financial regulator, provided clear guidance on including virtual assets in alternative investment ￰20￱ country’s favourable regulatory environment, plus the implementation of the Markets in Crypto-Assets (MiCA) framework across the European Union, has created a stable foundation for institutional engagement in digital ￰21￱ has been down 0.75% over the past 24 hours, trading at $121,395.05 at ￰22￱ token registered its all-time high last week on October 6, recording $126,198.07.

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