In a major nod of approval for Bitcoin as a mainstream asset, Luxembourg’s FSIL is poised to invest as much as 1% of its total portfolio – worth slightly more than $9.5 million – into BTC ETFs and other digital assets.
The development makes FSIL the first state-level Eurozone fund to invest in cryptocurrencies, a representative for the Agency for the Development of Luxembourg’s Financial Centre said. Bob Kieffer, Director of the Treasury, Luxembourg, said:
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 the Government in July 2025.
Although other European countries, such as Finland, Germany, and the UK, also hold a significant amount of BTC, most of those holdings stem from criminal seizures. Only Georgia holds 66 BTC exclusively for investment purposes, data from Bitbo shows.
According to the latest data, the US continues to hold the highest amount of BTC among all countries around the world. The US is followed by China, UK, Ukraine, Bhutan, and El Salvador.
Kieffer emphasized that the FSIL will not directly hold any BTC, citing “operational risks.” Instead, the fund has opted to gain indirect exposure to BTC through ETFs. He also said that 1% allocation strikes the right balance, sending the message about BTC’s long-term potential.
It is worth highlighting that under the revised guidelines, the FSIL is authorized to invest as much as 15% of its total portfolio into “alternative investments,” including digital assets. As of June 2025, the FSIL held total assets worth nearly $730 million, most of it being high-quality bonds.
