Luxembourg’s Sovereign Wealth Fund Dips Toe into Crypto Waters
Luxembourg’s Intergenerational Sovereign Wealth Fund (FSIL) has made history by investing 1% of its assets in Bitcoin etfs. This move makes FSIL teh first European state-backed fund to invest in crypto-backed products.
Finance Minister Gilles Roth announced this decision during a 2026 Budget presentation. The fund has allocated around $9 million to this new venture.
Director of the Treasury, Bob Kieffer, shared this news on LinkedIn. He explained that this investment aligns with FSIL’s updated investment policy, approved in July 2025. The policy allows up to 15% of the fund’s assets to be invested in alternative investments like cryptocurrency, private equity, and real estate.
Some may question the timing and amount of the investment. However, Kieffer believes that a 1% allocation is appropriate for FSIL’s profile and mission. It also signals Bitcoin’s long-term potential.
As of June 30, FSIL manages assets worth 764 million euros. This means the fund has invested approximately $9 million in Bitcoin ETFs.
Is Luxembourg changing its stance on crypto? previously, the country’s authorities flagged crypto exchanges as high-risk for money laundering. But with this investment, attitudes seem to be shifting. It remains to be seen if FSIL will allocate more of its 15% allowance to other crypto investments.
for more details, visit the LinkedIn post by Bob Kieffer.
