Luxembourg’s sovereign wealth fund has made a groundbreaking move by allocating 1% of its portfolio to Bitcoin exchange-traded funds (ETFs), becoming one of the first European state-backed entities to do so. The decision, confirmed by Treasury Director Bob Kieffer, was announced by Finance Minister Gilles Roth during the 2026 Budget presentation in the country’s legislature.

Kieffer explained that the investment reflects the growing maturity of digital assets and aligns with Luxembourg’s new investment policy approved in July 2025. The Intergenerational Sovereign Wealth Fund (FSIL) manages around €764 million ($888 million), meaning roughly $9 million has been placed into Bitcoin ETFs. The fund is also authorized to invest up to 15% of its assets in alternative options like crypto, real estate, and private equity.

This move highlights Luxembourg’s leadership in digital finance and mirrors similar trends across Europe. Norway, the Czech Republic, and Sweden have all shown increased interest in Bitcoin, signaling a broader shift toward crypto integration in traditional finance.