BlackRock-Linked Securitize Falls Sharply After SPAC Listing Amid Tokenization Surge

Here’s another rewritten version with a more analytical news tone:

Securitize’s steep decline following its public market debut mirrors a broader trend of newly listed crypto companies struggling after going public, according to Jeff Dorman, chief investment officer at Arca.

The BlackRock-backed tokenization platform (SECZ), which began trading last week, has faced selling pressure despite being positioned as a direct investment opportunity in one of the fastest-growing areas of blockchain adoption.

The company’s shares dropped as much as 25% on Tuesday before recovering part of the losses. Since completing its merger with Cantor Equity Partners II, Securitize has lost around 40% of its market value.

The decline comes despite strong institutional momentum behind tokenization. Financial giants including BlackRock, Franklin Templeton, and JPMorgan are exploring blockchain-based versions of traditional assets such as government bonds, investment funds, credit products, and equities. Citi forecasts that tokenized assets could expand to $5.5 trillion by 2030, while estimates from BCG and Ripple suggest the sector could eventually approach $19 trillion by 2033.

SPAC conversion triggers investor reshuffling

Dorman said the sell-off does not appear to be connected to any major negative news or concerns about Securitize’s operations.

He explained that volatility is common following SPAC mergers because the shareholder base often changes significantly after the transaction closes. Early SPAC investors typically exit, while longer-term public market investors step in and reassess the company’s valuation and growth outlook.

SPAC deals allow private firms to become publicly traded by merging with publicly listed acquisition companies. However, the transition period can create sharp price movements as ownership shifts, particularly when shares have limited liquidity or strong expectations were priced in before the merger.

Weak crypto stock performances add pressure

Recent struggles among crypto-related listings have also contributed to cautious investor sentiment, Dorman said.

Several major digital asset companies have experienced notable declines after going public. BitGo has fallen significantly since its IPO, Gemini has dropped sharply from its debut price, and Bullish has lost much of its initial valuation. Circle remains above its IPO price but has retreated from its opening level and previous highs, while Coinbase continues to trade below its 2021 direct listing price.

Securitize’s decline also came during a broader sell-off among crypto-linked stocks. The Nasdaq fell 2% on Tuesday, while Circle declined about 5%, BitGo slipped more than 4%, and blockchain-focused firm Figure dropped nearly 9%.