Securitize drops 40% after SPAC debut as crypto stocks face investor caution
In brief
- Securitize down 40% since SPAC merger with Cantor Equity Partner II closed last week
- Sharp declines mirror BitGo (70%), Gemini (85%), and Bullish (70%) post-listing performance
- Tokenized asset market projected to reach $5.5 trillion by 2030, per Citi
SPAC investor base turnover
Securitize's shares tumbled as much as 25% on Tuesday before recovering some losses, even as the broader market stumbled. On the same day, the tech-heavy Nasdaq lost 2%, and Figure, the blockchain firm of former SoFi CEO Mike Cagney, plunged nearly 8.8%.
According to Jeff Dorman, chief investment officer at Arca, the drop reflects a structural shift in ownership rather than fundamental problems. SPAC investors typically hold fixed-income positions and redeem shares after deals close, he explained. That forces a transition to new, equity-focused long-term holders—and those buyers are currently wary.
"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." — Jeff Dorman, chief investment officer at Arca
A pattern of post-debut weakness
Securitize isn't alone. BitGo tumbled 70% since its February IPO, while Gemini is down 85% from its September debut. Bullish has fallen over 70% from its $90 debut price in August 2025 and sits below its $37 IPO price. Coinbase is trading 56% lower from its $381 opening after going public through a direct listing in April 2021.
Circle, the stablecoin issuer, is one exception. Its shares remain more than double the $31 IPO price, though they're 77% off its June 2025 peak.
Dorman noted that poor performance of recent crypto-related stock listings have conditioned investors to be cautious.
Tokenization momentum persists
The weakness in crypto stocks contrasts sharply with growth in the underlying tokenization market. BlackRock, Franklin Templeton and JPMorgan have expanded efforts to bring traditional assets such as U.S. Treasuries, funds, credit and equities onto blockchain rails. Tokenized equity volumes surged 145% to a record $3.86B.
Forecasts remain bullish. Citi projected that tokenized assets could reach $5.5 trillion by 2030, while BCG and Ripple estimate the market could approach $19 trillion by 2033.
Yet stablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, signaling unease in the sector.
