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Key Takeaways
- Securitize shares are down about 40% since its SPAC merger with Cantor Equity Partner II closed last week
- Arca’s Jeff Dorman says the drop reflects SPAC investor turnover, not a fundamental issue with the business
- Other crypto-linked listings have also struggled, with BitGo down 70% and Gemini down 85% from their debuts
Securitize shares have dropped roughly 40% since the BlackRock-backed tokenization firm completed its SPAC merger last week, even as institutional interest in asset tokenization continues to build. Arca Chief Investment Officer Jeff Dorman said the decline appears tied to SPAC-related trading dynamics rather than any deterioration in the company’s business.
Shares Tumble Despite a Sector Attracting Wall Street Attention
Securitize stock fell as much as 25% on Tuesday before recovering part of the drop, extending a decline that has left the company down about 40% since its merger with special purpose acquisition company Cantor Equity Partner II closed last week.
The selloff contrasts with growing institutional activity around tokenization, one of the fastest-growing blockchain use cases on Wall Street. Firms including BlackRock, Franklin Templeton and JPMorgan have expanded 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 BCG and Ripple have estimated the market could approach $19 trillion by 2033.
Dorman Points to SPAC Mechanics, Not Fundamentals
Jeff Dorman said the decline lacks a clear fundamental trigger.
“There is no major negative fundamental catalyst that we can see. These kinds of big movements are common after SPACs because the entire investor base turns over from fixed-income-oriented SPAC buyers to new, fundamentally driven long-term equity owners.”
SPAC mergers commonly produce volatile early trading, according to market analysts. The vehicles raise capital first and identify an acquisition target later, allowing a private company to reach public markets through a merger with the shell entity.
Once a deal closes, the shareholder base often shifts from SPAC arbitrage investors and redemption-focused holders to public equity investors evaluating the company on its underlying fundamentals. That transition can produce sharp price swings, particularly when available float is limited or the stock traded up ahead of the merger.
Recent Crypto Listings Have Struggled Broadly
Dorman said weak performance among recently listed crypto-related companies has made investors more cautious toward the sector as a whole.
“Given how horrible recent crypto IPOs have been […] it’s not that surprising.”
Several recent crypto-linked listings have posted steep declines from their debut levels. BitGo has fallen 70% since its February initial public offering. Gemini, the exchange founded by the Winklevoss brothers, is down 85% from its September debut. Bullish has dropped more than 70% from its $90 debut price in August 2025 and now trades below its $37 IPO price.
Circle shares remain more than double the stablecoin issuer’s $31 IPO price but sit slightly below their $69.50 opening trade and are 77% off their June 2025 peak. Coinbase, which went public through a direct listing in April 2021, trades 56% below its $381 opening price.
Securitize’s decline coincided with a broadly negative session for crypto-related equities as the tech-heavy Nasdaq fell 2%. Circle shares were down 5%, BitGo fell more than 4%, and Figure, the blockchain company founded by former SoFi executive Mike Cagney, dropped nearly 8.8%.
