From ETFs to Crypto – Inside Luxembourg’s €8.2 Trillion Financial Empire
Luxembourg’s financial centre reached a new milestone in 2025, with assets under management surpassing €8.2 trillion for the first time, according to the annual report published on 26 March by Luxembourg for Finance (LFF). The growth spans funds, insurance, capital markets, and digital finance, reinforcing the country’s role as the world’s leading hub for cross-border investment despite persistent geopolitical tensions and shifting global capital flows. Tom Théobald and Luxembourg for Finance unveil a record-breaking year Over the past five years, assets under management have grown by more than 50%, reflecting sustained demand for Luxembourg-based investment structures. UCITS funds and hedge funds have both contributed to this expansion, with hedge funds now accounting for 35% of total assets under management—a sign of increasing diversification in investment strategies. Tom Théobald, CEO of Luxembourg for Finance, said the growth illustrates both the progressive diversification of the financial ecosystem and its capacity to support a wide range of financial activities. The ETF segment continued its upward trajectory, reaching €531.8 billion in assets under management by the end of 2025, an increase of 19.5% year-on-year. UCITS funds posted annual growth of 8.5%. Luxembourg also maintained its dominance in European long-term investment funds (Eltifs), hosting 150 [...]
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