Here’s a clear and polished paraphrased version:
The drop aligns with a broader trend of newly listed digital asset firms struggling after going public, according to Arca CIO Jeff Dorman.
Securitize (SECZ), a BlackRock-backed tokenization firm that debuted last week, has had a difficult start despite being one of the few pure-play opportunities tied to one of Wall Street’s fastest-growing crypto themes.
The stock fell as much as 25% on Tuesday before recovering slightly and is now down around 40% since completing its SPAC merger with Cantor Equity Partner II.
This decline comes even as interest in tokenization continues to surge. Major financial institutions such as BlackRock, Franklin Templeton, and JPMorgan are increasingly moving traditional assets—like U.S. Treasuries, funds, credit, and equities—onto blockchain infrastructure. Citi estimates the tokenized asset market could reach $5.5 trillion by 2030, while BCG and Ripple project it could grow to nearly $19 trillion by 2033.
SPAC transition dynamics
According to Dorman, the sell-off does not appear to be driven by any negative fundamentals or company-specific news.
He explained that sharp price swings are common after SPAC mergers, as the investor base shifts from short-term, arbitrage-focused buyers to long-term equity investors who evaluate the company’s fundamentals more closely.
SPACs raise capital first and then merge with a private firm to take it public. Once the merger is complete, early investors often exit, leading to a transition in ownership that can trigger volatility—especially when the stock has a limited float or was trading higher before the deal closed.
Weak sentiment toward crypto listings
Dorman also pointed to the poor track record of recent crypto-related IPOs, which has made investors more cautious.
Several high-profile listings have seen steep declines. BitGo has fallen about 70% since its February IPO, while Gemini is down roughly 85% from its September debut. Bullish has dropped more than 70% from its $90 debut price and now trades below its IPO level.
Circle remains above its $31 IPO price but is slightly below its opening trade and significantly off its 2025 highs. Meanwhile, Coinbase, which went public via direct listing in 2021, is trading more than 50% below its debut level.
Tuesday’s decline in Securitize also came amid a broader downturn in crypto-related stocks, as the Nasdaq fell 2%. Shares of Circle dropped about 5%, BitGo declined over 4%, and Figure—founded by former SoFi CEO Mike Cagney—slid nearly 8.8%.
