Luxembourg state fund ventures into Bitcoin ETFs!

Luxembourg state fund ventures into Bitcoin ETFs!

Luxembourg's Intergenerational Sovereign Wealth Fund (FSIL) announced today that it will invest 1% of its holdings, equivalent to approximately $9 million, in Bitcoin ETFs. This decision marks a significant step as FSIL becomes the first sovereign fund in Europe to invest in cryptocurrency funds. The announcement was made by Finance Minister Gilles Roth during a presentation on the 2026 Budget at the Chambre des Députés.https://crypto.news/luxembourg-wealth-fund-invests-1-in-bitcoin-etfs/

With this step, FSIL shows a remarkable turnaround in its investment policy. Recently, in July 2025, the Luxembourg government approved a new investment strategy under which FSIL is allowed to invest up to 15% of its portfolio in alternative assets, including cryptocurrencies. In addition to cryptocurrencies, other alternative investments such as private equity and real estate are also permitted.

Change in risk assessment

This investment comes at a time when Luxembourg authorities had previously classified crypto companies as “high risk” in terms of money laundering. In particular, the national risk analysis from May 2025 identified crypto exchanges as high risk due to their transaction volume, their reach among clients and the structure of their distribution channels. The structure of virtual asset service providers was also criticized due to unclear ownership or legal structures.https://crypto.news/luxembourg-wealth-fund-invests-1-in-bitcoin-etfs/

FSIL’s decision to invest in Bitcoin ETFs could fundamentally change attitudes towards cryptocurrencies in Luxembourg. It remains to be seen to what extent this move will encourage future investments by FSIL in other crypto-based instruments.

Current assets and prospects

As of June 30, FSIL's assets under management amounted to 764 million euros, equivalent to approximately $888 million. This solid asset base will enable the fund to advance into innovative forms of investment in the future and thus participate in the dynamic developments in the cryptocurrency market.https://crypto.news/luxembourg-wealth-fund-invests-1-in-bitcoin-etfs/