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

Luxembourg’s Intergenerational Sovereign Wealth Fund (FSIL) has invested 1% of its holdings in Bitcoin ETFs, making it the first state level fund in the Eurozone to do so.

Updated Oct 9, 2025, 9:05 a.m. Published Oct 9, 2025, 9:05 a.m.

A Luxembourg sovereign wealth fund has invested a 1% sliver of its holdings into Bitcoin ETFs, making it the first state level fund in the Eurozone to do so, according to a representative for the Agency for the Development of Luxembourg's Financial Centre.

European nations Finland, Georgia and the U.K. also hold bitcoin, although most of that crypto is sourced from criminal seizures, according to Bitbo, with the exception of Georgia, a nation outside the Eurozone that owns 66 BTC for investment purposes.

During his presentation of the 2026 Budget at the Chambre des Députés, Luxembourg Finance Minister Gilles Roth, revealed the European nation’s Intergenerational Sovereign Wealth Fund (FSIL) has invested 1% of its holdings in Bitcoin.

“Recognizing the growing maturity of this new asset class, and underlining Luxembourg’s leadership in digital finance, this investment is an application of the FSIL's new investment policy, which was approved by the Government in July 2025,” said Jonathan Westhead, communications lead for the Luxembourg Finance Agency representative via email.

Luxembourg, one of the least populated countries in Europe (682,000 approximately) introduced its Intergenerational Sovereign Fund (FSIL) back in 2014, intended to build up a reserve for future generations. The fund holds a modest $730 million of assets, most of its investments being in high-quality bonds.

Under the revised framework, the FSIL will continue to invest in equity and debt markets, while now also being authorized to allocate up to 15% of its assets to alternative investments. These include private equity and real estate, as well as crypto assets. To avoid operational risks, the exposure to Bitcoin has been taken through a selection of ETFs, Westhead said.

“Some might argue that we’re committing too little too late; others will point out the volatility and speculative nature of the investment. Yet, given the FSIL’s particular profile and mission, the Fund's management board concluded that a 1% allocation strikes the right balance, while sending a clear message about Bitcoin’s long-term potential. Obviously, what’s right for the FSIL might not be right for other investors,” he said.

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