Here’s another rewritten version with a smoother news-style flow:
The sharp decline reflects a wider trend among recently listed digital asset companies that have struggled to maintain momentum after going public, according to Jeff Dorman, chief investment officer at Arca.
Securitize (SECZ), the BlackRock-backed tokenization company that began trading last week, has endured a difficult debut despite offering investors direct exposure to one of the most closely watched areas in crypto: blockchain-based tokenization of traditional assets.
Shares plunged as much as 25% on Tuesday before recovering some losses, leaving the stock down about 40% since the completion of its SPAC merger with Cantor Equity Partners II.
The sell-off comes despite growing institutional interest in tokenization. Major financial firms, including BlackRock, Franklin Templeton, and JPMorgan, are expanding efforts to move assets such as government bonds, investment funds, credit products, and equities onto blockchain networks. Citi expects the tokenized asset market to reach $5.5 trillion by 2030, while BCG and Ripple have projected growth toward $19 trillion by 2033.
SPAC transition creates volatility
Dorman said the decline does not appear to be driven by any major negative news or weakness in Securitize’s underlying business.
He explained that significant price swings are typical after SPAC transactions because the shareholder base often changes after the merger closes. Early SPAC investors and arbitrage traders are replaced by longer-term equity investors who evaluate the company based on fundamentals.
SPACs provide a path for private companies to enter public markets through mergers with listed acquisition vehicles. Once completed, the transition from SPAC-focused investors to traditional shareholders can create selling pressure and increased volatility, especially when a stock has limited available shares.
Recent crypto listings weigh on investor confidence
Dorman also pointed to disappointing performances from several recent crypto-related public offerings, which have made investors more cautious toward new listings.
Digital asset companies including BitGo, Gemini, and Bullish have experienced significant declines following their market debuts. Circle remains above its IPO price but has retreated from its opening levels and previous highs, while Coinbase continues to trade well below its debut valuation after going public in 2021.
Securitize’s decline also occurred during a broader downturn among crypto-linked stocks. The Nasdaq dropped 2% on Tuesday, while Circle fell about 5%, BitGo declined more than 4%, and blockchain-focused firm Figure dropped nearly 9%.
