Luxembourg‘s sovereign wealth fund has invested 1% of its assets in bitcoin ETF.
During the presentation of the 2026 budget, Luxembourg Finance Minister Gilles Roth confirmed this information.
Recognising the growing maturity of this new asset class and underlining Luxembourg’s leadership in digital finance, this investment is the implementation of the fund’s new investment policy, approved by the government in July 2025, said Bob Kieffer, Director of the Luxembourg Treasury.
With a population of approximately 682,000, Luxembourg’s authorities established the Intergenerational Sovereign Wealth Fund in 2014 to create a reserve for future generations. Its assets currently stand at $730 million, with the majority of its investments in high-quality bonds.
Following the revised structure, the fund now has the right to allocate up to 15% of its assets to alternative investments. These include private equity, real estate, and crypto assets. According to Kieffer, to avoid operational risks, investments in Bitcoin are carried out through ETF.
Some may argue that we’re investing too little too late, while others will point to the volatility and speculative nature of the investments. However, given the fund’s unique profile and mission, the board concluded that a 1% allocation strikes the right balance while also sending a clear signal of Bitcoin’s long-term potential, the treasury director added.