Luxembourg became the first eurozone member state to invest in Bitcoin through an ETF.
Date: 2025-10-10 Author: Oliver Abernathy Categories: IN WORLD
The Luxembourg Sovereign Wealth Fund (FSIL) has for the first time allocated 1% of its assets to Bitcoin investments through an exchange-traded fund (ETF). This was announced by the country's Finance Minister, Gilles Roth, who noted that this move makes Luxembourg the first eurozone member state to officially invest in cryptocurrency assets.
Back in July 2025, the government approved an updated investment strategy for the FSIL. According to the new rules, up to 15% of the fund's assets can now be allocated to alternative investments, including private equity, real estate, and digital assets. This paved the way for the current decision to enter Bitcoin.
According to Jonathan Westhead, head of communications at the Luxembourg Financial Services Authority, the investment was made through carefully selected ETFs, which mitigated operational risks. He emphasized that this decision reflects the growing maturity of Bitcoin as an investment instrument and confirms Luxembourg's commitment to maintaining its leading position in digital finance.
"Opinions were divided: some believed the investment amount was too small, while others felt the move came too late. However, given the fund's objectives and long-term strategy, the board of directors concluded that 1% was a reasonable compromise between caution and confidence in Bitcoin's potential," Westhead noted.
The FSIL fund was created in 2014 with the goal of building financial reserves for future generations. Its assets are valued at approximately $730 million, with the majority of these still held in government bonds. The Bitcoin investment is seen as a symbolic but important step toward portfolio diversification.
Experts note that Luxembourg's decision could serve as a model for other European countries considering cryptocurrencies as part of their national investment strategies. This move underscores Bitcoin's growing institutional acceptance, despite persistent market volatility.
It was previously reported that the European Union plans to transfer oversight of the crypto market to ESMA. However, representatives of smaller countries, including Luxembourg, Malta, and Ireland, have expressed concern that excessive centralization could weaken their national financial centers.
Therefore, Luxembourg has not only established itself as an innovator in digital investment but also confirmed its intention to actively participate in shaping the future of the European crypto economy.
