Luxembourg’s Intergenerational Sovereign Wealth Fund (FSIL) is about to allocate 1% of its €700 million portfolio to bitcoin and different digital property through regulated exchange-traded funds, in response to Finance Minister Gilles Roth.
This €7 million funding marks the primary direct sovereign wealth publicity to bitcoin ETFs throughout the Eurozone.
Coverage shift permits bitcoin allocation
The choice follows a July 2025 coverage revision, which allows as much as 15% of FSIL’s property to be positioned in “various investments,” together with digital property.
Treasury Director Bob Kieffer described the transfer as an experiment, stating:
“The 1% allocation is a balanced experiment reflecting Bitcoin’s long-term potential.”
FSIL’s portfolio was beforehand concentrated in bonds and index funds, with its complete property valued round $887 million as of mid-2025.
Oblique publicity through ETFs
Reasonably than holding bitcoin straight, FSIL will acquire publicity via regulated bitcoin ETFs to attenuate custody and operational dangers.
This strategy is in keeping with broader threat administration practices amongst institutional buyers.
Luxembourg’s fintech ambitions
The allocation aligns with Luxembourg’s efforts to determine itself as a hub for digital finance beneath the EU’s Markets in Crypto-Property (MiCA) regulation.
The nation has attracted quite a few companies in search of MiCA licenses, reflecting its ambition to guide in Europe’s digital asset sector.
Rising world pattern
Luxembourg joins different governments cautiously exploring bitcoin publicity. Norway’s $1.9 trillion sovereign wealth fund maintains oblique bitcoin publicity through equities, whereas the Czech Republic and Finland have signaled related pursuits.