2025 Q3: Market Commentary: Investing in AI, Crypto & Tokenization: Future Market Trends
Investing in the Future: AI, Crypto, Tokenization, and Timeless Brands
A Personal Note of Thanks to Clients
Dear Everyone,
I want to thank all my KDM clients for their patience and support during our transition from the Pershing platform to Fidelity. Your understanding and cooperation have been invaluable.
With the transition now nearly complete, I am optimistic about the opportunities that the Fidelity platform will bring. I hope the move wasn't too much of an inconvenience. Lauren Casey played a key role, and I'd like to say "Thank You." I'd also like to express my appreciation to Larry Levy of Ike Capital for inviting me to join his firm as an investment advisor.
I look forward to many years of a fruitful partnership.
For Ike clients, I've met and spoken to many of you. I've enjoyed our conversations and look forward to building a long-lasting, trusting relationship with every one of you.
The Business of Investing and Market Trends
The Accelerating Rise of Artificial Intelligence
Artificial Intelligence is changing the world in monumental ways—and at seemingly superluminal speeds. I have no idea where this is all headed, but it's worth considering how the world will look in 5–10 years from now and how we'll interface with whatever technology looks like at the time. More importantly, it's paramount to find the best companies to express that view profitably.
AI is still in the early stages and will have far-reaching effects. Our species has crossed the Rubicon and will never be the same. In just a few short years, AI has evolved from predictive text (elementary school intelligence) to reasoning models (Ph.D.-level intelligence) and is approaching artificial general intelligence, which matches or surpasses human-level cognition on almost all tasks. The pace is astonishing and still accelerating.
The Growing Potential of Cryptocurrency
Crypto is another fast-growing segment of technology gaining momentum daily. It has become institutionalized and mainstream, with policy support, backing from legacy finance, and a generation of future wealth inheritors comfortable investing in this asset class.
Tokenization: A Multi-Trillion-Dollar Opportunity
Tokenization—the ability to trade illiquid assets on the blockchain—has the potential to become a multi-trillion-dollar asset class by 2030. Current market size is about $25 billion (excluding stablecoins), with private credit and tokenized U.S. treasuries as the most popular use cases.
Citi projects tokenization could reach $5 trillion by 2030.
Boston Consulting Group (BCG) and ADDX estimate a base case of $16.1 trillion in tokenized illiquid assets by 2030, with a best-case scenario of $68 trillion—about 10% of global GDP.
Anything can be tokenized—real estate, private equity, credit funds, art, carbon credits, hedge funds, and beyond. Companies like OpenAI or SpaceX could monetize success through tokens rather than stock, bypassing the cumbersome public offering process.
Ethereum’s Role in Tokenization
Ethereum is the foundation for defining token rules—ownership, transferability, and distribution. The rise of Digital Asset Treasury Companies (DATCOs) mirrors Microstrategy’s Bitcoin strategy but focuses on Ethereum. Sharplink Gaming, Bitmine Immersion, Bit Digital, and The Ether Machine are early players, with predictions that ETF treasury firms could buy millions of ETH.
Navigating Risks and Volatility in Emerging Markets
It's still early days for these technologies, and early winners can quickly become losers. The next Nvidia is likely an unknown today. Expect volatility, boom-and-bust cycles, and significant drawdowns before multi-trillion-dollar market caps emerge.
Companies Positioned for the Future
AI and Blockchain Leaders to Watch
ServiceNow: Applying AI agents (“Agentics”) for proactive, autonomous functions.
Robinhood: Could evolve into the “NYSE of tokens” with aggressive tokenization integration.
The winners will emerge over time, but patient investors could see 20x, 50x, or even 100x returns.
Timeless Luxury: Ferrari (RACE)
Ferrari offers brand recognition, scarcity, pricing power, and insulation from economic volatility. With a strong balance sheet, stable ownership, and decades of history, Ferrari operates with a long-term vision that makes it a standout non-tech investment.
Final Thoughts: Long-Term Investing Across Sectors
Ultimately, I want to own great businesses—whether in tech, retail, industrials, or crypto. There are tremendous opportunities for long-term investments with exponential potential.
And, together, with a bit of luck, we can stumble across one or two and enjoy the ride!
Thanks for your time and partnership in this journey.
Andre