Luxembourg’s Sovereign Wealth Fund invests 1% in Bitcoin
Luxembourg confirms its role as a pioneer in driving financial innovation and Europe’s dominant hub for alternative funds. Presenting the 2026 budget, Finance Minister Gilles Roth announced that the Luxembourg Intergenerational Sovereign Fund (FSIL) has 1% of its portfolio in Bitcoin as part of a new investment policy which allows the fund to allocate up to 15% of its assets in alternative investments, including private equity, real estate and crypto assets. To avoid operational risk, the investment in Bitcoin is made through a selection of ETFs.
By becoming the first eurozone government to invest part of its reserves in Bitcoin, Luxembourg once again demonstrates its commitment to support emerging and future-oriented investment trends. By far the largest centre in Europe for alternative investment funds, Luxembourg is also fast becoming the hub for serious crytpo firms under the European MiCA (Markets in Crypto-Assets) regulation, which entered into force at beginning of 2025.
More broadly, Luxembourg’s financial center aims to position itself as a leading European hub for digital assets. Already home to HSBC’s Orion platform as well as the location of choice for the bank’s new tokenised deposit services as well as the domicile of Europe’s first tokenised money market funds. More recently, the worlds’ largest listed crypto exchange, Coinbase, established its European crypto hub with a new MiCA license in Luxembourg, and intended on doubling its headcount by the end of next year, while international banking giant Standard Chartered opened a branch to provide digital asset custody services in Europe.
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