Securitize (SECZ), a tokenization company backed by BlackRock, has come under pressure in its first days as a public company. The stock fell as much as 25% on Tuesday before trimming part of the loss, and it is down about 40% since completing its merger with special purpose acquisition company Cantor Equity Partner II last week.
The weak start stands out because Securitize is one of the few listed names offering direct exposure to the tokenization trade, a segment that has been drawing increasing attention on Wall Street. Firms including BlackRock, Franklin Templeton and JPMorgan have been expanding efforts to move traditional assets such as U.S. Treasuries, funds, credit and equities onto blockchain infrastructure. Citi has projected tokenized assets could reach $5.5 trillion by 2030, while estimates from BCG and Ripple put the market close to $19 trillion by 2033.
Post-SPAC trading often brings abrupt shareholder turnover
Jeff Dorman, chief investment officer at Arca, said the selloff does not appear to be tied to a deterioration in Securitize’s business or any clear negative headline. “There is no major negative fundamental catalyst that we can see,” Dorman said. He added that large moves are common after SPAC combinations because the investor base rotates from SPAC buyers with a fixed-income mindset to longer-term public equity holders focused on fundamentals.
That transition can be rough. A SPAC raises money first and looks for an acquisition target later, giving a private company a route into public markets through a merger with the shell entity. Once the deal closes, arbitrage investors and redemption-oriented holders often exit, leaving the stock to be repriced by public market investors assessing valuation and operating prospects. Price swings can become sharper when float is limited or the shares had already run up ahead of the merger.
Recent crypto listings have left investors more cautious
Dorman also said weak performance across recent crypto-related listings has made investors less willing to chase new names. He cited Coinbase (COIN), Bullish (BLSH), Gemini (GEMI), BitGo (BTGO) and Circle (CRCL), saying the poor record of recent crypto IPOs makes Securitize’s early stumble less surprising.
The broader pattern is visible in recent numbers. Digital asset services and custody firm BitGo has fallen 70% since its February IPO. Gemini, the exchange founded by the Winklevoss brothers, is down 85% from its September debut. Bullish, the parent of CoinDesk, has dropped more than 70% from its $90 debut price in August 2025 and now trades below its $37 IPO price. Interest in tokenization remains strong, but public market appetite for newly listed crypto firms is clearly more restrained.