In times of stress, wealth always chases after safety, but in 2025, the definition of “safe” has become much murkier. The investment landscape for high-net-worth (HNW) investors is undergoing a significant transformation, and the definition of safe assets is being re-evaluated. In a world marked by geopolitical instability and unpredictable market responses, liquidity is increasingly viewed as a measure of control, autonomy and psychological reassurance. Investors are quietly rewriting their liquidity playbooks, showcasing a shift in wealth psychology.

T-Bills: Refuge amid the turmoil

U.S. Treasuries have long been the go-to choice during times of crisis. However, given recent events, even this asset class is being tested, and the long-standing fortress is showing some cracks. Once considered a safe corner of the market, it has become a battleground for hedge funds engaged in “basis trading”—speculative bets on price gaps between Treasuries and their futures. These trades depend heavily on repo funding, which can dry up suddenly in market stress. When that happens, funds can be forced to unwind positions en masse, potentially triggering liquidity spirals. This played out in March 2020, when the Covid-19 pandemic triggered a global dash for cash and repo markets abruptly tightened, forcing hedge funds to unwind their positions. This led to increased volatility and liquidity strains in the Treasury market. To try to stabilize, the U.S. Federal Reserve implemented emergency measures, including large-scale purchases of Treasury securities.

Today’s market faces similar worries. The issue isn’t just volatility—it’s structural fragility and the interconnectedness of financial institutions, which can result in systemic risks, especially during sudden liquidity withdrawal. The Fed is concerned about the web of dependencies connecting hedge funds, clearinghouses and banks via the Treasury repo market.

Still, Treasuries aren’t dead, and it’s too early to write them off. Short-duration T-bills, in particular, remain a preferred instrument among risk-aware investors because they strike the combination of traits that many HNWIs crave: relatively low risk, reasonable yield and—most importantly—liquidity. In a world where things can go sideways overnight, the ability to exit positions swiftly and without disruption is valued more than incremental returns.

A growing preference for digital autonomy

If T-bills represent cautious optimism, Bitcoin is starting to reflect something else: digital autonomy. Cryptocurrencies are no longer a niche domain for risk-happy technophiles. Bitcoin is finding its way into the portfolios of younger HNW investors who view it less as a speculative instrument and more as a tool of financial independence.

In an era of bank bail-ins, frozen accounts and political uncertainty, Bitcoin offers psychological insurance—a way to preserve access to one’s funds independently of centralized banking systems. For many, it represents a safety net in a world where financial infrastructure feels increasingly fragile.

Moreover, the credibility of cryptocurrencies as an asset class has grown considerably in recent times. Bitcoin is now held in ETFs and on major custodial platforms like BlackRock and Fidelity, reinforcing its legitimacy as an institutionally accepted asset. Notable regulatory milestones such as MiCA in the EU and ETF approvals in the U.S. are reframing crypto as a “compliant asset.” This is a big boost to their appeal among conservative HNWIs.

Crypto as a whole still remains a volatile asset class. But, in a way, that volatility is understood and accepted these days. Bitcoin’s appeal persists because what rattles people more is not volatility but the lack of access. Being unable to move one’s money in a moment of stress is the greatest fear that transcends crypto and touches every asset class right now. In that regard, cryptocurrencies offer an increasingly popular alternative option. That said, most institutional capital continues to flow into Bitcoin—and to a lesser degree, Ethereum. But not the broader crypto ecosystem. The narrative of legitimacy appears to be mostly confined to these two assets for now.

Gold’s return offers less inflation, more de-dollarization

Gold has also re-entered the spotlight, but not for the usual reasons—this time, the focus is not on inflation fears and the metal’s traditional role as a hedge. Gold’s demand today is driven by the desire to de-dollarize and mitigate geopolitical exposure. Central banks around the world are increasing their reserves, seeking insulation from financial shocks and growing geopolitical tensions.

Many countries now view gold as a neutral reserve asset that can be used to insulate their economies from U.S. monetary policy and reduce reliance on the dollar in international transactions. High-net-worth investors are also taking note of this trend, choosing gold as a store of value not just to diversify, but to reduce exposure to global fiat-driven volatility.

Gold offers something that other assets cannot: a tangible, non-digital store of value that operates outside the influence of any single currency or government. Unlike Bitcoin, you can’t email it to yourself across borders, but in terms of psychological safety, it still holds a unique place. In an increasingly digitized and interconnected world, gold reminds people that some wealth should be physically untouchable to feel permanent and reliable. It’s as much about emotional security as it is about portfolio strategy.

Liquidity is now an emotional anchor

What all of these asset shifts have in common is a growing recognition that liquidity is not just a technical metric, it is also an emotional comfort zone. Investors no longer ask, “Can I sell this?” They ask, “Can I get out if things go bad, before everyone else?” How quickly and predictably they can do so when market conditions deteriorate is a key factor up for consideration these days.

 Recent events have demonstrated just how quickly liquidity can vanish. From the UK’s LDI pension crisis to Silicon Valley Bank’s overnight implosion, the lesson is clear: in a digital, interconnected world, liquidity crunches arrive with little to no warning. Not because of poor asset selection, but because too many people hit the “sell” button at the same time, and the markets just can’t handle it. This results in a new set of investor priorities. Access, execution flexibility and operational resilience now rank alongside—or above—yield and long-term appreciation in wealth management discussions.

What wealth managers must understand

So what does this mean for advisors, private banks and family offices? It means that traditional approaches to portfolio construction are no longer sufficient. Today’s clients are asking deeper questions about asset behavior under stress, and they expect precise, actionable answers. In response to this changing mindset, asset managers should keep several strategies in mind.

First: segmentation matters. Advisors need to start viewing portfolios not just in terms of risk and reward, but also in terms of exit timelines. What can be liquidated in a day? A week? A quarter? Segment portfolios by liquidity tiers to offer greater clarity and control. That’s how investors are learning to think now.

Second: diversify not just across assets, but across liquidity types. Investment-grade corporate bonds might carry more credit risk than Treasuries, for example, but they offer alternatives for those seeking yield without locking up capital long-term.

Third: embrace transparency and offer real-time monitoring tools. Dashboards that show bid-ask spreads, margin call thresholds and funding market stress aren’t just for CIOs anymore—clients want to be able to see them too.

The future of liquidity thinking

In 2025, liquidity is no longer just a technical detail. It’s a board-level issue. It influences asset selection, client satisfaction and, ultimately, institutional resilience. The biggest takeaway? Liquidity must be built before it’s needed. In volatile periods, buffers are tested, often brutally and with no warning, so make sure to construct them while there’s relative calm.

Stress test everything, and remember: the true mark of safety isn’t an asset’s label or historical reputation—it’s how it behaves when the music stops. Investors and institutions must take the initiative to prepare for liquidity shocks, because when the stress hits, the window to act is often measured in minutes, not days.