Investor and Crypto Risk Trends

In recent weeks, there is an increasing number of reports and analyses in prominent media outlets about an alarming outflow of assets from the U.S. to other destinations such as Europe and Asia-Pacific (APAC).

Why are investors moving their capital out of the U.S. in 2025?

Let’s examine the data supporting this trend. We’ve also quantified the trend and answered one of the most pressing investor questions: How much risk does this bring to your digital and financial assets?

Capital Flight Trends and Data

What is the evidence of capital outflows from the U.S. markets in 2025?

• U.S. equity funds saw outflows for three consecutive weeks in April 2025, totaling $15 billion — the largest weekly net disposals since December 2024.
• Large-cap funds alone lost $14.06 billion, while small- and mid-cap funds shed $3.94 billion and $1.26 billion, respectively.
• Cross-regional real estate investments highlight diverging trends: North America attracted $9 billion in H2 2024 (up 40% YoY), but Europe and APAC saw even larger inflows of $21.63 billion and $6.3 billion, respectively.
• Foreign investors reduced exposure to U.S. equities and Treasurys, with the S&P 500 and dollar declining simultaneously in April 2025 — a rare divergence from historical safe-haven patterns.

Drivers of the Outflow

What’s causing the capital exodus from the U.S.?

Most analyses point to several major forces:

• Trade policy volatility: President Trump’s “liberation day” tariffs and subsequent U-turns created significant market instability, forcing investors to liquidate U.S. Treasurys and equities.
• Valuation disparities: U.S. tech equities are under scrutiny for high valuations compared to more moderately priced assets in Europe and APAC.

Why are investors leaving high-value U.S. tech stocks for foreign markets?

While high valuations may reflect value creation, many investors are looking abroad for cheaper, high-return opportunities.

• Geopolitical realignment: Budget deficits (~6% of GDP) and global power shifts have spurred diversification into European bonds and APAC real estate.
• Currency dynamics: A strong dollar is pushing Asian investors to domestic markets and European investors toward U.S. industrial/office assets.

Risks to Digital and Financial Assets

How does U.S. capital flight affect my digital and financial assets?

• Equity volatility: Divestment from U.S. tech stocks could trigger larger swings, especially affecting retail investors in mega-cap stocks.
• Digital asset instability: Crypto is currently stable but may face systemic risks if capital outflows grow.

Can crypto be affected by U.S. financial instability?

Yes. The New York Fed warns that crypto’s “salient risk of large price declines” could impact traditional finance if interconnectedness increases.

• Currency depreciation: A weakening dollar erodes value for international holders of U.S. assets.

Safeguarding Digital and Financial Assets Through Digital Legacy Planning

What can I do to protect my assets during financial uncertainty?

Current turbulence calls for strong protection strategies. Services like DGLegacy offer:

• Encrypted storage and delegated access to digital wallets and financial accounts.
• Access granted only in case of fatal events, not before.
• A grab-and-go digital briefcase with your digital and financial assets.
• Tools to support heirs during liquidity events and market stress.

Is an Estate Plan enough to protect your digital assets?

Often, people ask this. The simple answer is: no.

Even if you have the best Estate Plan, if your loved ones don’t know about your assets or can’t access them, it will be of little value to them. Especially when they need these assets the most.

What’s the difference between Estate Planning and Digital Legacy Planning?

Wills and Trusts ensure transfer of ownership. Digital legacy services like DGLegacy ensure access management — who can access what, when, and how.

Digital Legacy Planning services such as DGLegacy work with assets globally, irrelevant of the jurisdiction or the type of the asset.

Final Thoughts

What’s the best strategy to protect your wealth in a shifting global market?

With global investment priorities realigning, the risks are clear. While not immediate, the long-term implications require action.

Proactive measures — from portfolio diversification to digital legacy planning — are essential for protecting digital and financial assets in times of turbulence.

As capital shifts reshape global markets, it’s not just about seeking opportunity — it’s also about ensuring access, visibility, and control when it matters most.