Luxembourg’s sovereign fund allocated 1% to Bitcoin ETFs, marking the first European investment by a government-backed entity.
Bob Kieffer, Luxembourg’s Director of Treasury and Secretary-General Bob Kieffer announced the investment on Wednesday in LinkedIn post. He said Finance Minister Gilles Roth had revealed the decision during his presentation of the 2026 Budget at the Chambre des Députés, Luxembourg’s legislature.
“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 Government in July 2025,” Kieffer stated.
Luxembourg’s Intergenerational Sovereign Wealth Fund reportedly has invested 1% in Bitcoin ETF products. Consider the assets managed by the fund. about As of 30 June, 764 million Euros (almost $880 million) were invested in Bitcoin ETFs.
Related: Norway’s sovereign wealth fund ups indirect Bitcoin exposure in 2025
A new framework for strategic development
Those who are familiar with the official position of Luxembourg on cryptocurrency may be surprised by this news. It was reported in May that Luxembourg’s risk report for 2025 had been released. classified crypto companies as high-risk Cryptocurrency is being used to launder money, even though local institutions are increasing their adoption of the technology.
Kieffer stated that Luxembourg sovereign wealth continues to invest in the equity and debt market, but now is also investing in other markets. “authorized to allocate up to 15% of its assets to alternative investments,” Cryptocurrencies, real estate, and private equity are all included. Direct cryptocurrency ownership was still deemed to be too risky.
“To avoid operational risks, the exposure to Bitcoin has been taken through a selection of ETFs.”
New framework for the new Framework was announced In late September, and following a review Mid-June, the policy was changed. In the announcement, it was described as a “significant evolution” And said that “this new iteration reflects the fund’s increased maturity and the need to better address the country’s economic, social, and environmental priorities.”
Related: Sovereign wealth funds piling into BTC as retail exits — Coinbase exec
Kieffer recognized that modest funding might appear to some as conservative and others as speculative. He said that the decision was a step forward in a balance.
“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,” “He said”
Magazine: Older investors are risking everything for a crypto-funded retirement
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
