Luxembourg Bold Bitcoin Bet: “No Second Best” as Eurozone’s First Sovereign Crypto Investment

Luxembourg's Intergenerational Sovereign Wealth Fund (FSIL) has made a landmark decision by allocating 1% of its €745 million portfolio, approximately €7.45 million, exclusively to Bitcoin, marking the Eurozone's first sovereign crypto investment. Minister Roth declared this a long-term commitment, quoting Michael Saylor by stating, "there is no second best," and emphatically asserting, "Luxembourg HODLs." This move was enabled by a new investment policy approved in July 2025, allowing up to 15% in alternative assets, with the Bitcoin purchase executed via regulated ETFs compliant with MiCA regulations. The choice of Bitcoin only, despite policy allowing other assets, reflects a maximalist view on its role in finance. Luxembourg is leveraging its established digital finance leadership, having regulated exchanges for years and hosting major crypto HQs like Coinbase EU. This action follows similar, albeit smaller, experiments in the Czech Republic, suggesting a growing trend among smaller EU states, despite historical skepticism from the European Central Bank.

(Source：Brave New Coin)