Protesters with Danish and Greenlandic flags take part in a demonstration in Copenhagen, Denmark, on January 17, 2026.
Nichlas Poller | Bloomberg | Getty Images
Danish pension operator AcademicPension said it is exiting U.S. government bonds for financial reasons as Denmark clashes with President Donald Trump over his threats to take over Greenland.
Anders Schelde, head of investment at AcademicPension, said the decision was due to what he saw as “bad”. [U.S.] “Government finances” in the midst of the American debt crisis. But it also comes at a time of escalating tensions between the US and Denmark following Trump’s recent threats to impose tariffs on European countries if Greenland, an Arctic territory owned by Denmark, is not sold to the US
“It is not directly related to the ongoing divide between the [U.S.] and Europe, but of course that did not make it more difficult to make the decision,” Schelde said in a statement to CNBC.
The fund currently holds approximately $100 million in U.S. Treasury bonds, a spokesperson for AcademicPension confirmed to CNBC. The academic-focused fund plans to sell this stake by the end of the month.
Schelde particularly pointed to the skyrocketing debt bills the U.S. is facing after decades of government overspending. The US posted a budget deficit of $1.78 trillion last year, just over 2% less than in fiscal 2024, as Trump’s sweeping and high tariffs took effect.
Moody’s Ratings cut the United States’ credit rating from Aaa to Aa1 in May, citing the budget deficit and high borrowing costs associated with restructuring debt at high interest rates.
U.S. finances “made us think that we need to strive to find an alternative way to manage our liquidity and risk,” Schelde said. “Now we have found such a way and we [are] implement that.
Denmark has become increasingly hostile towards the US as Trump has stepped up his calls for control of Greenland to be handed over to the US. Trump said over the weekend that he would impose tariffs on several European countries starting February 1 if the U.S. does not take control of Greenland, and that those duties could rise to 25% on June 1.
European leaders have reportedly considered the use of counter-tariffs and other punitive economic measures. Some investors fear that European countries could dump their U.S. assets in response to Trump’s new tariffs.
Greenland Prime Minister Jens-Frederik Nielsen said on Monday that they would “not exert pressure” and “stand firmly by dialogue, respect and international law”.
Treasury yields in the U.S. and abroad rose sharply on Tuesday, a sign that investors feel geopolitical turmoil is increasing. The U.S. dollar and stocks fell and gold rose to new all-time highs in a session dominated by the “Sell America” trade.
Ray Dalio, founder of Bridgewater Associates, told CNBC on Tuesday that sovereign wealth funds could start shedding U.S. investments if they no longer view the U.S. as a stable trading partner.
“On the other side of trade, deficits and trade wars, there is capital and capital wars,” Dalio told CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland. “When you look at the conflicts, you can’t ignore the possibility of capital wars. In other words, maybe there isn’t the same propensity to buy… US debt and so on.”
Reuters first reported the Danish pension fund’s exit from the finance ministry.