Luxembourg regulator opens door for retail funds to invest in crypto
Analysis by Eric Baumgartner and Eleni Katopodi
Key takeaways:
- In February 2026, Luxembourg’s financial regulator announced that UCITS investment funds may carry indirect crypto exposure of up to 10%, a move that allows everyday investors more exposure to the digital asset market.
- This change in regulation demonstrates the increasing acceptance and institutionalization of crypto as an asset class.
- As Luxembourg is the largest fund domicile in Europe, it is highly likely that other regulators will follow suit.
- Up to 10% of the total assets of Luxembourg’s UCITS funds can now flow into crypto securities like ETPs and ETFs.
Luxembourg’s regulator, the Commission de Surveillance du Secteur Financier (CSSF) announced in February…
