Luxembourg Becomes First Eurozone Nation to Invest in Bitcoin Through Sovereign Wealth Fund

Luxembourg’s Intergenerational Sovereign Wealth Fund (FSIL) has become the first state-level fund in the Eurozone to invest in Bitcoin , allocating 1% of its holdings to Bitcoin exchange-traded funds (ETFs). Bob Kieffer, Luxembourg’s Director of the Treasury and Secretary General, announced the move in an October 8 LinkedIn ￰1￱ noted that Finance Minister Gilles Roth had revealed the decision earlier during the presentation of the 2026 Budget at the Chambre des Députés, Luxembourg’s legislature. (L-R) Romain Heischbourg, Head of the Consignment Office; Gilles Roth, Luxembourg’s Minister of Finance; Bob Kieffer, Director of the State Treasury; Credit: MFIN “ Under the revised framework, the FSIL will continue to invest in equity and debt markets, while now also being authorized to allocate up to 15% of its assets to alternative investments ,” Kieffer ￰2￱ include private equity, real estate, and crypto ￰3￱ or Bold?

Inside Luxembourg’s 1% Bitcoin Allocation To minimize operational risks, the fund’s Bitcoin exposure will be managed through regulated ETFs rather than direct ￰4￱ total assets under management of approximately €764 million (about $888 million) as of June 30, the 1% allocation puts roughly $9 million into Bitcoin ￰5￱ addressed the mixed reactions to the move, acknowledging that opinions vary on both timing and scale. “ Some might argue that we’re committing too little too late; others will point out the volatility and speculative nature of the investment ,” he wrote. However, he stressed that the FSIL management board views the 1% allocation as a sensible balance between innovation and ￰6￱ decision, according to Kieffer, reflects confidence in Bitcoin’s long-term potential while staying consistent with the fund’s conservative investment ￰7￱ Flagged Crypto as High-Risk—Then Invested Anyway The announcement may surprise those familiar with Luxembourg’s traditionally cautious stance toward ￰8￱ follows earlier reports from late May indicating that the country’s 2025 National Risk Assessment had classified crypto-related businesses as high-risk for money ￰9￱ report noted that Virtual Asset Service Providers (VASPs) often operate in decentralized environments, which complicates oversight and makes tracing illicit financial activities more ￰10￱ Luxembourg continues to attract major crypto players seeking regulatory ￰11￱ May, Bitstamp, one of the world’s longest-running cryptocurrency exchanges, secured its Crypto Asset Service Provider (CASP) license from Luxembourg regulators under the European Union’s Markets in Crypto-Assets (MiCA) ￰12￱ January, UK-based Standard Chartered announced plans to establish a Luxembourg-based entity as its regulatory hub for crypto and digital asset custody services across the European ￰13￱ has also expanded its European presence , obtaining a license under the EU’s MiCA regulatory framework through Luxembourg’s financial regulator, solidifying the nation’s position as a compliant hub for digital ￰14￱ Down National Bitcoin Holdings Around the World Data from Bitcoin Treasuries shows that, beyond Europe, nation-states and government entities collectively hold about 515,885 Bitcoin, valued at roughly $63 billion, representing around 2.46% of Bitcoin’s total ￰15￱ United States leads with 198,021 BTC worth approximately $24.2 billion, followed by China with 190,000 BTC valued at $23.2 billion, much of it seized through enforcement actions despite China’s restrictive crypto policies.), while Ukraine holds 46,351 BTC valued at $5.7 billion, reflecting its reliance on crypto donations amid ongoing conflict and its progressive approach to digital ￰16￱ Salvador remains the only country to have adopted Bitcoin as legal tender , holding 6,344 BTC worth $776 million, making it a global outlier in crypto-based monetary ￰17￱ the United Arab Emirates and Bhutan hold more than 6,000 BTC each, showing a trend among both resource-rich and emerging nations to treat Bitcoin as a strategic reserve ￰18￱ government moves $23.73M Bitcoin to Binance perfectly timing $BTC 's $112K ATH, maintaining massive 11,711 $BTC worth $1.3B with superior market strategy. #Bhutan #Bitcoin ￰0￱ — ￰19￱ (@cryptonews) July 10, 2025 Several countries, including Finland, Roswell in New Mexico, Germany, and Bulgaria , now have zero or minimal holdings after liquidating their positions.