- Luxembourg has decided to allocate one percent of its sovereign wealth fund towards BTC ETFs
- The move is intended to project Luxembourg as a pro-crypto economy
- FSIL’s holding was estimated to stand at $888 million in assets under management as of June
Luxembourg has decided to explore financial exposure to Bitcoin, the most expensive crypto asset in the world. Touted as the fourth richest nation, Luxembourg has decided to allocate one percent of its sovereign wealth fund towards BTC ETFs as part of this step.
Luxembourg’s sovereign wealth fund, the Fonds souverain intergénératiponnel du Luxembourg (FSIL), is expected to invest an estimated $9 million into Bitcoin (BTC) Exchange-Traded Funds (ETFs). While national authorities haven’t confirmed the exact amount, media reports arrived at the figure by estimating one percent of the FSIL’s holding was estimated to stand at $888 million in assets under management as of June.
Gilles Roth, Luxembourg’s Minister of Finance, announced the development while presenting the draft budget for 2026 this week. Luxembourgish parliamentarian Laurent Mosar lauded the development on social media.
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“This is really a great news for crypto-assets because this is the first investment of a public fund in bitcoin in Luxembourg. It’s a first important step in direction of more public investments in alternative assets and cryptocurrencies,” Mosar said.
The move is intended to project Luxembourg as a pro-crypto economy that is now regulated under EU’s MiCA regulations. It comes after the country increased scrutiny over the crypto sector and labelled crypto firms as high risk entities for money laundering.
This year, Standard Chartered expanded crypto services in the country. More recently in August, Ripple said it was rolling out its RLUSD stablecoin in Europe with Luxembourg being the point of initiation.
This ongoing gradual expansion of the crypto sector in the country is among reasons why its looking to explore experimenting with digital assets.
The FSIL’s policy was recently revamped to allow the allocation of up to 15 percent of its total holdings into alternative assets like real estate, crypto, and private equities. With its BTC ETF decision, Luxembourg has officially become the first Eurozone state to make BTC a part of its national reserves.
