In a historic step for Europe’s financial sector, Luxembourg has become the first European country to include Bitcoin in its national reserves, marking a new chapter in sovereign cryptocurrency investment. The announcement was made by Finance Minister Gilles Roth during the presentation of the 2026 national budget.
Under the plan, the Sovereign Intergenerational Fund (FSIL) will allocate 1% of its portfolio—worth over €7 million—into Bitcoin Exchange-Traded Funds (ETFs). Treasury Director Bob Kieffer explained that ETFs provide exposure to Bitcoin while avoiding the risks of holding the cryptocurrency directly.
The move signals Luxembourg’s ambition to strengthen its position as a European FinTech and crypto hub, following its early adoption of the EU’s Markets in Crypto-Assets (MiCA) regulation. Lawmakers hailed the decision as a forward-thinking step that could attract institutional investors while diversifying national assets.
Although the strategy carries risks due to Bitcoin’s volatility, Luxembourg’s approach reflects a global shift toward digital asset adoption by sovereign funds. The country now stands at the forefront of Europe’s effort to balance innovation with financial stability.