Luxembourg Sovereign Wealth Fund Invests 1% in Bitcoin ETFs
Luxembourg's Intergenerational Sovereign Wealth Fund (FSIL) has invested 1% of its holdings into Bitcoin ETFs, marking the first instance of a Eurozone state-level fund doing so.
The investment reflects Luxembourg’s new strategy for digital finance, approved in July 2025, acknowledging the maturity of cryptocurrencies as an asset class.
Other European countries, including Finland, Georgia, and the U.K., hold Bitcoin, mainly from criminal seizures. Georgia holds 66 BTC for investment purposes.
FSIL, established in 2014, aims to secure resources for future generations and currently manages $730 million, predominantly in high-quality bonds.
A revised investment framework allows FSIL to allocate up to 15% of its assets to alternative investments such as private equity, real estate, and crypto assets.
The fund's Bitcoin exposure is managed through ETFs to minimize operational risks.
The decision to invest 1% in Bitcoin aims to balance risk while indicating confidence in Bitcoin’s long-term potential.
