Luxembourg Bets On Bitcoin As Sovereign Fund Adds 1% Exposure To BTC ETFs

In an announcement made yesterday, Luxembourg’s Finance Minister disclosed that the European country’s Intergenerational Sovereign Wealth Fund (FSIL) is set to allocate 1% of its total portfolio to Bitcoin (BTC) exchange-traded funds (ETFs) and other cryptocurrencies.

Luxembourg Wealth Fund Invests In Bitcoin

In a major nod of approval for Bitcoin as a mainstream asset, Luxembourg’s FSIL is poised to invest as much as 1% of its total portfolio – worth slightly more than $9.5 million – into BTC ETFs and other digital assets.

The development makes FSIL the first state-level Eurozone fund to invest in cryptocurrencies, a representative for the Agency for the Development of Luxembourg’s Financial Centre said. Bob Kieffer, Director of the Treasury, Luxembourg, said:

Although other European countries, such as Finland, Germany, and the UK, also hold a significant amount of BTC, most of those holdings stem from criminal seizures. Only Georgia holds 66 BTC exclusively for investment purposes, data from Bitbo shows.

According to the latest data, the US continues to hold the highest amount of BTC among all countries around the world. The US is followed by China, UK, Ukraine, Bhutan, and El Salvador.

Kieffer emphasized that the FSIL will not directly hold any BTC, citing “operational risks.” Instead, the fund has opted to gain indirect exposure to BTC through ETFs. He also said that 1% allocation strikes the right balance, sending the message about BTC’s long-term potential.

It is worth highlighting that under the revised guidelines, the FSIL is authorized to invest as much as 15% of its total portfolio into “alternative investments,” including digital assets. As of June 2025, the FSIL held total assets worth nearly $730 million, most of it being high-quality bonds.

Countries Ramping Up BTC Holdings

While BTC accumulation was mostly limited to corporations until a few years back, countries like El Salvador spearheaded sovereign adoption of Bitcoin, igniting a trend that is now spreading across the world at a rapid pace.

Notably, one of US President Donald Trump’s major campaign promises was to establish a strategic Bitcoin reserve. Senator Cynthia Lummis recently gave an update about the reserve, saying that it can “start anytime.”

Several other countries have expressed willingness to establish their own strategic Bitcoin reserves. For instance, in May 2025, the Brazilian chief of staff to the Vice President reaffirmed plans to add BTC to the country’s sovereign reserves.

Similarly, India’s ruling party BJP’s spokesperson, called for a strategic Bitcoin reserve pilot in July. At press time, BTC trades at $120,809, down 2.5% in the past 24 hours.