“Luxembourg HODLs”: EU Finance Hub Invests 1% of Sovereign Wealth Fund in Bitcoin

Main European monetary centre, Luxembourg, has allotted 1% of the funds held within the nation’s Intergenerational Sovereign Wealth Fund (FSIL) into Bitcoin, as introduced by its Finance Minister, Gilles Roth, on Thursday.

Speaking on the Bitcoin Amsterdam 2026 convention, Roth mentioned that the fund had chosen to take a position completely in Bitcoin regardless of being authorised to spend money on a variety of digital property.

“Whereas the fund’s funding coverage permits for an allocation to any crypto asset, it has chosen to take a position solely in Bitcoin,” Roth mentioned.

As of mid-June 2025, FSIL held about US$887 million (AU$1.3b), principally in bonds and index funds — a Bitcoin allocation of 1% suggests an funding of slightly below US$9 million (AU$13m).

Roth first announced Luxembourg’s plan to spend money on Bitcoin final month throughout his 2026 funds presentation. The Finance Minister defined that the nation’s sovereign wealth fund will maintain the Bitcoin not directly via exchange-traded funds (ETFs) to minimise custody and operational dangers.

FSIL’s funding in Bitcoin makes it the primary European nationwide sovereign wealth fund to allocate funds to Bitcoin.

Let me be clear, Luxembourg HODLs. We’re nonetheless early, I’m positive others will quickly observe.

Gilles Roth, Luxembourg Finance Minister

Roth mentioned he believes Bitcoin will play an essential half in giving Europe’s financial system a aggressive benefit sooner or later, referring to it as a “system that by no means shuts down.”

“I consider that crypto and particularly, Bitcoin, are a part of the answer,” Roth mentioned. 

“In my thoughts, our economies won’t swap to the Bitcoin commonplace, however on the similar time Bitcoin will, with none doubt, be a part of the way forward for finance.”

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EU Trying to Centralise Monetary Market Regulation, Luxembourg Opposes Transfer

Luxembourg is considered one of six founding members of the European Union (EU) and is house to a variety of EU establishments together with the European Funding Financial institution and the European Funding Fund. Final month, the EU announced it is developing a plan to centralise the regulation of inventory exchanges and crypto exchanges by bringing them underneath the oversight of the European Securities and Markets Authority (ESMA).

The plan goals to cut back regulatory fragmentation throughout the EU and set up a unified regulatory framework as a way to encourage innovation in Europe and cut back reliance on funding and funding from non-EU nations.

Beneath the proposed framework, ESMA’s regulatory powers could be expanded to reflect these of the Securities and Exchange Commission (SEC) within the US. The brand new powers would see ESMA’s jurisdiction expanded to incorporate cross-border entities all through the EU, equivalent to buying and selling platforms and clearing homes.

Associated: EU Urged to Back Euro Stablecoins to Challenge Dollar Dominance

The proposal has been opposed by some smaller EU nations, together with Luxembourg and Ireland, over fears it may hurt their home finance industries. Roth described the plan as an “ineffective centralised mannequin.” He mentioned he would like to see gradual alignment between nationwide regulators.

Most of the bigger EU nations, together with France, Austria and Italy have expressed assist for the plan, suggesting it may stop regulatory arbitrage — by which entities search licenses in whichever nation gives the loosest regulation — underneath the brand new Markets in Crypto Assets (MiCA) framework.

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