Luxembourg’s Bold Move into Bitcoin
In a groundbreaking move, Luxembourg has committed exclusively to Bitcoin for its Intergenerational Sovereign Wealth Fund of Luxembourg (FSIL), signaling a strong intent not to pursue a diversified investment strategy. The country’s Finance Minister, Gilles Roth, announced that Luxembourg has allocated approximately €7 million, representing 1% of the fund’s total assets, directly into Bitcoin.
Minister Roth’s Vision
Speaking during the Bitcoin Amsterdam 2025 conference, Minister Roth expressed his excitement to be at the forefront of adopting Bitcoin through the sovereign wealth fund, asserting:
“Bitcoin will help shape the future of finance: secure, open, and competitive.”
As shared on social media platform X, Roth emphasized that despite the fund’s investment policy permitting allocations in various cryptocurrencies, the exclusive choice is Bitcoin. Citing prominent figures in the crypto space, he stated:
“There is no second best… and we’re in it for the long haul.”
This statement was met with enthusiastic applause from the audience. In a definitive statement about Luxembourg’s strategy, he remarked:
“Let me be clear: Luxembourg HODLs.”
This declaration underscores the country’s commitment to maintaining its Bitcoin holdings, with Roth highlighting the pioneering nature of their initiative.
Luxembourg’s Role in the Global Investment Landscape
As a prominent player in the global investment landscape, Luxembourg oversees more than €7.6 trillion in funds. Roth pointed out that in recent years, the nation has become a hub for numerous cross-border fintech firms that provide services such as payment processing, tokenization, and regulatory compliance on a global scale. In June, cryptocurrency exchange Coinbase obtained a Markets in Crypto Assets license from Luxembourg, enabling it to deliver crypto services across the European Union, although its operations in Luxembourg will likely be limited.
Regulatory Developments and Future Outlook
Interestingly, Luxembourg’s 2025 risk assessment initially categorized crypto businesses as “high-risk” due to concerns over money laundering, given the decentralized nature of Virtual Asset Service Providers (VASPs). However, Roth reflected on the significant strides made over the past decade to develop a trustworthy environment for Bitcoin and digital assets. He noted Luxembourg’s pioneering efforts in regulating the first European crypto exchange, Bitstamp, almost a decade ago.
Roth concluded by asserting the nation’s belief in a digital financial future, dubbing Bitcoin as “digital gold.”
