Luxembourg Sovereign Wealth Fund Buys Bitcoin, Reveals Groundbreaking European Crypto Allocation
Luxembourg’s intergenerational sovereign wealth fund (FSIL) is accumulating Bitcoin ( BTC ), becoming the first European nation to dedicate funds toward allocating crypto.
The nation’s Ministry of Finance says its sovereign fund has been revised under its mission to “create savings whose income can be used, under certain conditions and within certain limits, to contribute to the well-being of future generations.”
Among the assets listed in the fund is a category marked “alternative assets” which comprise up to 15% of the fund and include private equity – mostly in the technology and defense sectors – real estate, as well as crypto assets, particularly the crypto king.
Digital assets and “particularly Bitcoin” now make up 1% of the fund, while private equity and real estate make up 10% and 4% respectively.
In a post on LinkedIn, Bob Kieffer, Luxembourg’s Director of the Treasury, says the 1% digital asset allocation is the “right balance” for the fund and that it only purchased BTC through exchange-traded funds (ETFs).
“Under the revised framework, the FSIL will continue to invest in equity and debt markets, while now also being authorized to allocate up to 15% of its assets to alternative investments. These include private equity and real estate, as well as crypto assets.
To avoid operational risks, the exposure to Bitcoin has been taken through a selection of ETFs. Some might argue that we’re committing too little too late; others will point out the volatility and speculative nature of the investment.
Yet, given the FSIL’s particular profile and mission, the Fund’s management board concluded that a 1% allocation strikes the right balance, while sending a clear message about Bitcoin’s long-term potential.”
BTC is trading at $113,420 at time of writing, a 6.79% drop in the last 24 hours.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
S&P Lowers Tether Rating: Concerns Over Risky Reserves and CEO's Claims of Innovation
- S&P Global downgraded Tether's USDT to "weak" (5) due to increased exposure to volatile assets like Bitcoin (5.6% of reserves) and transparency gaps in custodians and reserve management. - Tether CEO Paolo Ardoino dismissed the downgrade as traditional finance's "loathing" of digital assets, emphasizing the firm's overcapitalization and resilience through market crises. - Chinese traders reacted with skepticism and anxiety to the downgrade, despite USDT's $184B market cap and its role as a backbone of th
Ethereum Updates: Bulls Eye $3,468 Amid Emerging Bearish Signals
- Ethereum showed early rebound signs as RSI rose from oversold levels and MACD signaled bullish momentum, though Death Cross patterns highlighted lingering bearish risks. - Bitcoin's rebound above $90,000 revived BlackRock ETF profitability, with $3.2B in unrealized gains, contrasting Ethereum's struggle to break above $3,468 EMA. - Market caution persisted as BitDegree Fear & Greed Index remained in "Fear" territory at 28, reflecting regulatory uncertainty and sideways crypto trading dynamics. - Structur
Ethereum News Today: Ethereum’s Fusaka: Achieving 100,000 TPS While Maintaining Decentralization
- Ethereum developers are finalizing the Fusaka upgrade (Dec 3), introducing PeerDAS to reduce data verification costs and boost layer-2 scalability. - The upgrade enables 100,000+ TPS via BPO forks and 60M gas limit increases, enhancing transaction throughput while maintaining decentralization. - Historical context includes prior upgrades (Merge, Dencun) and market reactions showing mixed sentiment despite improved technical metrics. - Security features like EIP-7934 (10MB block cap) and deterministic pro
Bitcoin Updates: BlackRock's ETF Surges as Competitors Struggle—Is This the Next Benchmark for Crypto?
- BlackRock's IBIT ETF became its top revenue source with $42.8M inflows, outperforming rivals like FBTC (-$33.3M). - Growing investor demand for regulated Bitcoin exposure highlights shifting preferences toward established asset managers. - Sustained inflows reflect institutional adoption trends and hedging against macroeconomic risks via compliant BTC access. - ETF liquidity and transparency advantages position them as bridges between traditional finance and digital assets. - Market watchers monitor flow
Trending news
MoreCrypto prices
More
