The investment marks a milestone for the nation’s financial strategy, reflecting a gradual shift toward diversified, innovation-driven asset management.
Roth said the move aligns with the FSIL’s revised framework approved in July 2025, which now permits up to 15% of its portfolio to be allocated to alternative assets, including private equity, real estate, and digital assets such as cryptocurrencies.
Jonathan Westhead, head of communications at the Luxembourg Finance Agency, said the 1% allocation demonstrates the country’s confidence in the growing maturity of digital assets and sends a clear message about Bitcoin’s role in the future of finance.”
He noted that the decision to invest through Bitcoin ETFs was designed to mitigate risk while maintaining regulatory compliance under Luxembourg’s investment law, especially considering the FSIL’s standards.
The FSIL, established in 2014 to preserve national wealth for future generations, was traditionally limited to high-quality bonds and conservative assets. The July policy amendment marked a turning point, expanding the fund’s scope to include higher-yield, risk-adjusted investments that reflect global financial innovation.
Luxembourg’s allocation makes it the first EU nation to make a deliberate, policy-backed investment in Bitcoin. While other European countries, such as Finland and the UK, hold Bitcoin seized through law enforcement, Luxembourg’s approach is strategic and planned.
Luxembourg’s regulatory environment has also played a critical role. In July, the country’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), issued updated guidelines allowing virtual assets in alternative investment funds, bolstering the groundwork for the FSIL’s new investment mandate.
