Luxembourg sovereign wealth fund invests 1% in Bitcoin ETFs

Luxembourg’s sovereign wealthiness money has allocated 1% of its portfolio to Bitcoin exchange-traded funds (ETFs), marking 1 of the archetypal specified moves by a European state-backed concern entity.

Luxembourg Director of the Treasury and Secretary General Bob Kieffer noted the concern successful a Wednesday LinkedIn post. He said Finance Minister Gilles Roth had revealed the determination during his presumption of the 2026 Budget astatine the Chambre des Députés, Luxembourg’s legislature.

Gilles Roth. Source: Wikimedia

“Recognizing the increasing maturity of this caller plus class, and underlining Luxembourg’s enactment successful integer finance, this concern is an exertion of the FSIL’s caller concern policy, which was approved by Government successful July 2025,“ Kieffer said.

Luxembourg’s Intergenerational Sovereign Wealth Fund (FSIL) has reportedly invested 1% of its holdings into Bitcoin ETF products. Considering the fund’s assets nether absorption of about 764 cardinal euros (almost $888 million) arsenic of June 30, this is equivalent to a placement of astir $9 cardinal into Bitcoin ETFs.

Related: Norway’s sovereign wealthiness money ups indirect Bitcoin vulnerability successful 2025

New model signals strategical evolution

The quality whitethorn travel arsenic a astonishment to those who person been pursuing the country’s authoritative stance connected cryptocurrencies. The announcement followed precocious May reports that Luxembourg’s 2025 hazard study classified crypto companies arsenic high-risk for wealth laundering, adjacent arsenic section institutions ramped up their crypto adoption efforts.

Kieffer noted that Luxembourg’s sovereign wealthiness volition proceed to put successful equity and indebtedness markets, but is present besides “authorized to allocate up to 15% of its assets to alternate investments,” including cryptocurrencies, existent property and backstage equity. Still, nonstop cryptocurrency holding was deemed excessively risky:

The caller model was announced successful precocious September and follows a review of the concern argumentation successful mid-June. The announcement described the alteration arsenic a “significant evolution” and said that “this caller iteration reflects the fund’s accrued maturity and the request to amended code the country’s economic, social, and biology priorities.”

Related: Sovereign wealthiness funds piling into BTC arsenic retail exits — Coinbase exec

Kieffer acknowledged that the humble allocation mightiness beryllium seen arsenic excessively blimpish by immoderate and excessively speculative by others. He defended the determination arsenic a balanced measurement forward.

“Given the FSIL’s peculiar illustration and mission, the fund’s absorption committee concluded that a 1% allocation strikes the close equilibrium portion sending a wide connection astir Bitcoin’s semipermanent potential,” helium said.

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