Luxembourg Claims Bragging Rights as First Eurozone Nation to Invest in Bitcoin

Luxembourg’s Intergenerational Sovereign Wealth Fund (FSIL) has made headlines by investing 1% of its holdings in Bitcoin ETFs, marking the first instance of a state-level fund in the Eurozone engaging with Bitcoin. Finance Minister Gilles Roth announced this investment during the presentation of the 2026 Budget, emphasizing Luxembourg’s leadership in digital finance. The FSIL, established in 2014 to save for future generations, now has the authorization to allocate up to 15% of its assets to alternative investments, including cryptocurrencies. While the fund holds $730 million in assets, its holdings primarily consist of high-quality bonds. The decision reflects a growing maturity in recognizing Bitcoin's long-term potential, balancing the fund’s profile with the inherent volatility of cryptocurrencies. Other European nations have also held Bitcoin, predominantly through criminal seizures, but Luxembourg’s approach is distinct as it is primarily for investment.

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