Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.

Today we're discussing Gen Z and crypto. Gen Z is leading the charge in digital-first investing, favoring crypto, ETFs, and alternative assets over traditional financial advice. Despite viewing crypto as risky, nearly 65% of Gen Z investors still plan to invest in it in 2025.

Plus, a look back at the last week of market activity.

So, let’s get into the Industry Chatter! But first, did someone forward you this email? Click here to subscribe!

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INDUSTRY CHATTER

🧠 Gen Z and Crypto: Risky, But Irresistible?

Cryptocurrency is still riding a wave of volatility, but that’s never been a dealbreaker for young investors. Even as prices fluctuate and regulators weigh in, interest in crypto remains strong — especially among Gen Z. Coins like Bitcoin, Ethereum, and Solana continue to make headlines, and despite the ups and downs, many younger investors are keeping them in their portfolios as long-term plays rather than short-term wins.

A new report from YouGov shows that Gen Z is more likely than any other generation to invest in 2025, even though they’re very aware of the risks. In fact, 84% of Gen Z investors say they see crypto as risky, but nearly 65% still plan to invest in it this year. That tells us something important: Gen Z isn’t avoiding risk — they’re trying to manage it more intelligently.

Unlike older generations who tend to stick with more traditional strategies — like long-term index funds or working with financial advisors — Gen Z is often more DIY in their approach. They’re turning to platforms that offer fractional shares, low-fee trades, and educational tools that help them understand what they’re buying. They’re also more open to exploring alternative assets — from crypto and ETFs to things like digital collectibles and real estate crowdfunding.

So why crypto, even when the risk is clear? For many younger investors, it’s about potential. Crypto represents a chance to grow wealth in a system that feels outside the status quo. It also fits into a larger trend of digital-first investing, where convenience, access, and values (like decentralization or tech innovation) play a bigger role than traditional performance metrics alone.

Financial advisors like Tyrone Ross Jr. are seeing that shift firsthand. He encourages younger investors to prioritize education over hype, especially when it comes to volatile assets like Bitcoin. He’s less concerned about whether Bitcoin hits $100K or more, and more focused on helping people invest intentionally — without getting caught in high fees or short-term thinking.

The bottom line? Gen Z is leaning in — not just into crypto, but into investing as a whole. They’re cautious, curious, and more informed than ever. And while their portfolios might look a little different from their parents’, their goals are familiar: build wealth, stay flexible, and make decisions that align with their values.

MARKET RECAP

Wall Street Panic Extends To Main Street As US-China Trade War Escalates, Bond Vigilantes Make A Comeback: This Week In Markets

President Donald Trump's aggressive trade tariffs extend beyond Wall Street, rattling the Treasury market and the U.S. dollar. The turmoil is now challenging the long-held narrative of “American exceptionalism” that has underpinned global confidence in the U.S. economy for decades.

A broad trade-weighted measure of the dollar fell Friday to its lowest level since April 2022. The greenback is now down 10% since Trump's inauguration, raising concerns about its global reserve status.

Although recent March inflation reports showed cooling price pressures across both consumer and producer markets, bond markets didn't react with the usual optimism.

Long-dated Treasury yields climbed steadily all week, with the 10-year yield breaking past 4.50% — a level not seen since February. The 30-year yield briefly hit 5%, signaling that bond vigilantes —investors who dump bonds in protest of policy mistakes — have returned.

Amid widespread selling of U.S. Treasury bonds and the dollar, gold reaffirmed its role as a haven, surging to a new all-time high above $3,200 per ounce.

On Wednesday, stocks skyrocketed after the Trump administration announced a 90-day suspension of tariffs for most trade partners — China being the notable exception, with levies surging to 145%. The move triggered the biggest one-day rally on Wall Street since 2008.

Still, that positive momentum faded quickly. By the week's end, investor sentiment was once again clouded by uncertainty. The White House remains committed to its hardline tariff policy against China, even as Beijing retaliated with counter-tariffs on U.S. goods that now reach as high as 125%.

Meanwhile, first-quarter earnings reports from banking giants including JPMorgan Chase & Co. (JPM), Morgan Stanley (MS), and Wells Fargo Co. (WFC) delivered encouraging numbers. Yet, investors remain cautious as the true impact of tariffs likely won't be visible until the second-quarter results.

“The economy is facing considerable turbulence," JPMorgan CEO Jamie Dimon said.

More troubling are signs from Main Street. American consumers are growing increasingly pessimistic.

The University of Michigan's preliminary consumer sentiment index for April plunged to its lowest level since mid-2022. Expectations for inflation jumped sharply: one-year outlooks soared to 6.7%, the highest since 1981, while five-year expectations climbed to 4.4%, the highest since 1990.

THE WEEK AHEAD

US Fed Chair Powell speaks, ECB interest rate decision, Johnson & Johnson earnings, and more

Economic Data

• Monday: US Fed Christopher Waller speaks

• Tuesday: US import price index, China GDP

• Wednesday: US retail sales, crude oil inventories, and Fed Chair Powell speaks

• Thursday: US initial jobless claims, European Central Bank interest rate decision

• Friday: Good Friday (Holiday), San Francisco Fed President Mary Daly speaks

Earnings

• Monday: Goldman Sachs (GS), M&T Bank (MTB)

• Tuesday: Johnson & Johnson (JNJ), Bank of America (BAC), Citigroup (C)

• Wednesday: ASML Holding (ASML), Abbott Laboratories (ABT)

• Thursday: UnitedHealth Group (UNH), Netflix (NFLX), Blackstone (BX)

• Friday: HDFC Bank (HDB), Park National (PRK)

Click here for the full calendar of economic data and earnings reports.

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