Luxembourg Invests in Bitcoin ETFs, Trump Mulls CZ Pardon

The Intergenerational Sovereign Wealth Fund of Luxembourg has made history by allocating 1% of its portfolio to Bitcoin ETFs and other crypto assets, becoming the first Eurozone country to invest sovereign wealth directly in cryptocurrency. Announced by Finance Minister Gilles Roth, this strategic move represents a significant milestone in institutional adoption, demonstrating that even traditionally conservative government investment vehicles are recognizing Bitcoin’s potential as a store of value and portfolio diversifier. The decision comes at a time when global sovereign wealth funds collectively manage over $11 trillion in assets, potentially opening the door for similar allocations from other nations.

This allocation follows growing institutional interest in Bitcoin ETFs, which have seen substantial inflows since their approval in the United States earlier this year. Luxembourg’s move is particularly significant given its status as a major European financial hub and its reputation for prudent financial management. The country’s sovereign wealth fund, designed to benefit future generations, has now positioned itself at the forefront of digital asset adoption among European nations, potentially influencing other Eurozone members to reconsider their stance on cryptocurrency investments.

The regulatory landscape for cryptocurrency is undergoing significant transformation, with the United States Securities and Exchange Commission planning to formalize an ‘innovation exemption’ for crypto and digital asset companies by year-end. This exemption would allow companies to leverage digital assets and other innovative technologies within the United States, potentially creating a more favorable environment for blockchain development and digital asset adoption. The move represents a notable shift from the SEC’s traditionally cautious approach toward cryptocurrency regulation.

Meanwhile, President Trump is reportedly considering a presidential pardon for Binance founder Changpeng Zhao, a decision that could restore Zhao’s reputation in the cryptocurrency industry and clear his path for a potential return to Binance. The administration’s concerns about the optics of such a pardon highlight the political sensitivity surrounding cryptocurrency executives and their legal challenges. This development follows another significant legal resolution in the crypto space, as Roger Ver, known as ‘Bitcoin Jesus,’ reached a deal with the United States Department of Justice to have his tax evasion case dropped, marking another high-profile legal conclusion in the industry.

Crypto asset manager Grayscale has significantly enhanced its product offerings by enabling staking for its US Ethereum Trust ETF (ETHE) and Ethereum Mini Trust ETF products, allowing investors to earn additional yield on their holdings. The company has also activated staking for the Grayscale Solana Trust (GSOL), expanding yield-generating opportunities across multiple blockchain ecosystems. These developments represent a maturation of cryptocurrency investment products, bridging the gap between traditional finance and decentralized finance features.

Traditional financial institutions are making substantial moves into the crypto space, with Intercontinental Exchange, parent entity of the New York Stock Exchange (NYSE), announcing a $2 billion stake in prediction market platform Polymarket. This investment marks ICE’s significant foray into event-driven markets and enhances Polymarket’s credibility in the United States. Simultaneously, real-world asset tokenization platform Ondo Finance completed its acquisition of Oasis Pro, a regulated digital asset broker-dealer and alternative trading system, positioning the company to develop and provide tokenized securities markets in the US.

The infrastructure supporting cryptocurrency continues to evolve, with Web3 wallet MetaMask introducing perpetual contract trading through in-wallet access to Hyperliquid’s DEX market. This feature helps establish MetaMask as an all-in-one self-custodial trading and investment hub for global finance. Meanwhile, NEAR has developed the Intents framework for seamless multichain execution, utilizing solvers and chain signatures to create processes that feel as simple as token swaps, while Dogecoin treasury company CleanCore announced it holds 710 million DOGE worth $188 million, with ambitions to reach 1 billion DOGE, backed by the Dogecoin Foundation.