Luxembourg Becomes First Eurozone Country to Invest in Bitcoin ETFs - BTC Investment Strategy

Luxembourg's sovereign wealth fund has allocated 1% of its portfolio to Bitcoin ETFs, marking a historic milestone as the first Eurozone nation to make such a state-level cryptocurrency investment. The Intergenerational Sovereign Wealth Fund (FSIL), established in 2014 to build reserves for future generations, now holds approximately $730 million in assets primarily invested in high-quality bonds. According to Jonathan Westhead, communications lead for the Luxembourg Finance Agency, this strategic move reflects the growing maturity of Bitcoin as an asset class and underscores Luxembourg's leadership in digital finance. The investment was made through selected ETFs to mitigate operational risks, following the fund's revised investment policy approved in July 2025 that allows up to 15% allocation to alternative investments including private equity, real estate, and crypto assets. While European nations like Finland, Georgia, and the U.K. also hold Bitcoin, most of their holdings originate from criminal seizures, with Georgia being the exception with 66 BTC held for investment purposes. Luxembourg's approach represents a deliberate investment strategy rather than acquired assets. The FSIL management board emphasized that the 1% allocation balances risk management with recognition of Bitcoin's long-term potential, acknowledging that while some might consider the allocation conservative, it aligns with the fund's specific profile and mission to secure intergenerational wealth.