Luxembourg has become the first country in the Eurozone to officially invest in Bitcoin through its sovereign wealth fund. Finance Minister Gilles Roth announced this groundbreaking decision at the Bitcoin Amsterdam 2025 conference on November 13, 2025.
The country’s Intergenerational Sovereign Wealth Fund (FSIL) has allocated 1% of its portfolio exclusively to Bitcoin. This equals about €7.45 million from the fund’s total assets of €745 million.
Historic Declaration: “There’s No Second Best”
At the Amsterdam conference, Minister Roth made a bold statement that surprised many attendees. He quoted MicroStrategy founder Michael Saylor, saying: “While the fund’s investment policy allows for an allocation to any crypto asset, it has chosen to invest only in Bitcoin. And because, as Michael Saylor once said, there is no second best and we’re in it for the long haul.”
The minister closed his speech with an even stronger declaration: “Let me be clear: Luxembourg HODLs.” This statement received instant applause from the audience and marks the clearest Bitcoin stance ever taken by a European finance minister.
Smart Strategy Behind the Investment
Luxembourg’s decision wasn’t made hastily. The government approved a new investment policy in July 2025 that allows FSIL to put up to 15% of its assets into alternative investments. These include private equity, real estate, and digital assets like Bitcoin.
The Bitcoin investment is executed through regulated exchange-traded funds (ETFs). This approach follows the European Union’s Markets in Crypto-Assets (MiCA) framework, ensuring full compliance with regulations.
Bob Kieffer, Director of the Treasury, explained that this investment recognizes “the growing maturity of this new asset class” and underlines Luxembourg’s leadership in digital finance, according to reports from the budget presentation.
Why Luxembourg Chose Bitcoin Only
What makes Luxembourg’s approach unique is their Bitcoin-only strategy. While their investment policy allows them to buy any cryptocurrency, they deliberately chose only Bitcoin. This decision reflects a maximalist approach rarely seen among government institutions.
Minister Roth explained their reasoning during his presentation. He positioned Bitcoin as part of Europe’s competitive strategy and noted that digital assets are now central to global policy discussions. “This was never about hype. It was about a bridge between code and capital,” he said.
The minister also emphasized Bitcoin’s role in the future of finance: “In my mind, our economies will not switch to the Bitcoin standard. But at the same time, Bitcoin will without any doubt be part of the future of finance.”
Luxembourg’s Crypto Leadership Position
Luxembourg isn’t new to the cryptocurrency space. The country has been building its digital asset credentials for over a decade. They regulated Bitstamp, the first European crypto exchange, nearly ten years ago.
Today, Luxembourg manages over €7.6 trillion in cross-border investment assets. The country hosts more than 115 banks from over 20 countries, making it Europe’s second-largest alternative funds hub after the United States.
Major crypto companies have chosen Luxembourg as their European base. Coinbase established its EU headquarters there in summer 2025 under MiCA regulations. The country is also home to numerous crypto exchanges, custodians, and service providers.
Broader European Bitcoin Adoption
Luxembourg’s move comes alongside similar developments in Europe. The Czech National Bank also revealed its own Bitcoin experiment this month. The Czech central bank created a $1 million test portfolio that includes Bitcoin, a USD stablecoin, and a tokenized deposit.
Czech National Bank Governor Aleš Michl said the goal was to “test decentralised bitcoin from the central bank’s perspective and evaluate its potential role in diversifying our reserves.”
These parallel announcements suggest a growing trend among smaller European Union states. Analysts believe these moves may encourage other countries to explore Bitcoin as part of their financial strategies.
Unlike larger European economies, smaller nations like Luxembourg and the Czech Republic have more flexibility to experiment with new technologies. They can move quickly without the complex political processes that might slow down bigger countries.
The European Central Bank has traditionally been skeptical of Bitcoin. ECB President Christine Lagarde previously dismissed the Czech proposal when it was first suggested in January 2025. However, individual EU member states retain some autonomy over their own financial decisions.
Fund Growth and Future Plans
FSIL was established in 2014 to create financial reserves for future generations. The fund receives at least €50 million annually, with contributions indexed to inflation. Officials expect the fund to grow to €850 million by the end of 2026.
Currently, the fund maintains a conservative portfolio structure. About 57% is invested in high-quality bonds, 40% in equity index funds, and 3% in cash. The 1% Bitcoin allocation represents a small but significant diversification step.
Minister Roth emphasized that this is a long-term strategy, not a speculative bet. The fund plans to hold its Bitcoin position for years, fitting with its mission to build wealth for future generations.
Source: @RothGilles
Officials noted that Bitcoin’s inclusion reflects the asset’s growing maturity. While they acknowledge Bitcoin’s volatility, they believe the small allocation strikes the right balance between innovation and risk management.
The Orange Revolution Begins
Luxembourg’s historic Bitcoin investment marks a turning point for European finance. By choosing Bitcoin exclusively and declaring “there’s no second best,” the country has positioned itself as a leader in the digital asset revolution. As other European nations watch this experiment, Luxembourg’s bold move may inspire similar decisions across the continent. The message is clear: Bitcoin has officially entered the halls of European government finance, and there’s no going back.