Investors Shift Toward European Assets Amid US Policy Uncertainty: EURC and ETF Data Highlight Trend

Global investors are accelerating the reallocation of capital to European assets as policy uncertainty and potential monetary easing in the United States heighten risk exposure, according to Euroclear executive Valerie Urbain. Since January 1, 2025, clients from China, the Middle East, and the Asia-Pacific have increased diversification, reducing U.S. holdings and showing heightened interest in Europe. AkademikerPension, a Danish pension fund, is cited as a representative, planning to sell $1 billion in U.S. Treasuries following escalated geopolitical tensions. Euroclear reported net profit of €11.1 billion in 2025, up from €10.4 billion in 2024, and end-of-year托管 assets surpassed €430 billion, a 7% increase. Interest income from frozen Russian assets totaled €50 billion in 2024, down 26% year-over-year, with €33 billion designated for Ukraine support. Urbain noted that Trump’s return is signaling a “warning bell,” with dollar-based hedging now a public topic in investment discussions.