Luxembourg is the latest country to join the Bitcoin (BTC) bandwagon, as the European country’s Minister of Finance recently announced that the nation had allocated as much as €7 million ($8.1 million) to add the top digital asset to its sovereign wealth fund.
Luxembourg sovereign wealth fund invests in Bitcoin
Speaking at Bitcoin Amsterdam, Luxembourg’s Finance Minister, Gilles Roth stated that Luxembourg had become the first sovereign nation in Europe to invest in BTC through its sovereign wealth fund.
Roth stated that the small landlocked European nation decided to invest only in Bitcoin for its Intergeneration Sovereign Wealth Fund (ISWF), and, as such, has no intention to buy any other cryptocurrency.
Notably, the €7 million investment indicates 1% of Luxembourg’s total assets. In a following post on X, Roth remarked that “Bitcoin will help shape the future of finance: secure, open, and competitive.”
Roth added that although the ISWF’s investment policy allows for exposure to any and all digital assets, for now, the fund has decided to invest only in BTC. The Minister of Finance echoed Strategy CEO Michael Saylor’s viral statement that when it comes to cryptocurrencies, “there is no second best.”
By adding exposure to BTC, Luxembourg joins a rapidly growing list of nation-states that are stacking the top digital asset as a hedge against inflation and any future economic upheaval.
Close followers of the crypto industry know that El Salvador was the first country in the world to invest in BTC. Since then, lawmakers from several other countries have expressed desire to create a Strategic Bitcoin Reserve, including the US.
Will countries flock to Ethereum next?
While Bitcoin has already cemented itself as the preferred cryptocurrency, thanks to its rising institutional adoption by both corporations and nation-states, there are rising speculations that some countries may turn to Ethereum (ETH) as the choice of asset to add to their treasury.
Several global firms have already launched Ethereum-based corporate treasury strategies. According to data from Coingecko, BitMine Immersion Inc. is the leading publicly-traded firm with an ETH treasury strategy, holding more than 3.5 million ETH.
Currently, as much as 4.52% of Ethereum’s total supply is held by publicly-traded companies, holding a notional value of slightly more than $17.4 billion. Other prominent companies featuring among the top 10 companies with ETH holdings include SharpLink, Coinbase Global, and Galaxy Digital Holdings.
