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The investment positions Luxembourg among the leaders, with other states already involved.
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«Some might argue that we are making a mistake,» one official said.
Luxembourg, a European country with a small but stable economy, gave the green light to the purchase of bitcoin (BTC), announcing that its Luxembourg Intergenerational Sovereign Fund (FSIL) would allocate 1% of its portfolio (more than 7 million euros) to invest in the pioneering digital currency.
Finance Minister Gilles Roth confirmed the investment during his 2026 budget speech, although the measure had already been in official documents since July.
This action marks the “first investment of a public fund in bitcoin in Luxembourg,” celebrated the deputy for the Christian Social Popular Party Laurent Mosar on social networks. The move firmly positions Luxembourg on the global digital asset map.
The investment reinforces Luxembourg’s ambition to be a European base for bitcoin companies and digital assets, especially now, after the entry into force of the Cryptoasset Markets Act (MiCA).
The FSIL, with 745 million euros in assets as of June 2025, could reach more than 8 million euros in digital assets in 2026. The exposure will be carried out through ETFs to “avoid operational risks,” according to Bob Kieffer, treasury director, as published by local media.
Although some question whether it is «too little or too late,» Kieffer defended the 1% allocation as the «right balance.» This decision sends a “clear message about the long-term potential of bitcoin,” Kieffer said. «Some might argue that we are making a mistake,» the official says.
The fund, which currently does not hold digital currencies, Thus, it diversifies its portfolio mainly in bonds and index funds.
In this way, Luxembourg follows in the footsteps of other sovereign funds, such as the Norwegian giant, which owns about 11,400 bitcoin. Governments like Finland store 100 bitcoin.
Meanwhile, the United Kingdom has an estimated 61,000 bitcoins from confiscations, which underlines the state presence although with a different origin than an active investment.
However, while some in Europe, such as Luxembourg, are focused on investing in bitcoin, others believe that it is important to take into account the digital euro, which Christine Lagarde, president of the European Central Bank (ECB), classifies as «a unique opportunity,» as reported by NoticiasVE.