365Crypto
Luxembourg has quietly made a bold move in digital finance. Its Intergenerational Sovereign Wealth Fund (FSIL) just invested 1% of its $900 million portfolio into Bitcoin ETFs — about $9 million. It’s one of the first European state funds to officially back Bitcoin.
Treasury Director Bob Kieffer shared the update after Finance Minister Gilles Roth mentioned it during Luxembourg’s 2026 budget presentation. The investment is part of FSIL’s new policy approved in July 2025, marking a shift toward recognizing crypto as a maturing asset class.
FSIL’s assets under management reached roughly €764 million ($888 million) by mid-2025. The new rules let the fund allocate up to 15% into “alternative investments,” which include crypto, real estate, and private equity. However, instead of holding Bitcoin directly, FSIL chose ETFs to reduce risk and simplify management.
Some say a 1% allocation is too small, others call it too daring. Kieffer called it “a balanced signal” showing Luxembourg’s confidence in Bitcoin’s long-term value. The move aligns with Europe’s growing crypto appetite — following Norway’s Bitcoin exposure boost and Czech and Swedish interest in Bitcoin-linked reserves.
*Footnote: ETF (Exchange-Traded Fund) — a financial product that tracks the price of an asset, like Bitcoin, without holding it directly.*
