Securitize Shares Sink 40% Since SPAC Debut Despite Tokenization Momentum

Securitize, the BlackRock backed tokenization firm, has fallen roughly 40% since completing its SPAC merger last week, even as interest in real world asset tokenization continues to grow across Wall Street. Shares dropped as much as 25% on Tuesday alone before recovering some ground.

Growth In Tokenization Contrasts With Stock Slide

The decline comes despite rising momentum for tokenization, one of the fastest-growing trends in traditional finance. Firms including BlackRock, Franklin Templeton and JPMorgan have been expanding efforts to bring assets like Treasuries, funds, credit and equities onto blockchain networks. Citi has projected the tokenized asset market could hit $5.5 trillion by 2030, while BCG and Ripple estimate it could reach $19 trillion by 2033.

Investor Turnover After SPAC Deal

Jeff Dorman, chief investment officer at Arca, said there’s no clear negative news driving the drop. He explained that SPAC mergers often trigger investor turnover, as short-term SPAC buyers exit and long-term equity investors move in, a shift that frequently causes sharp early price swings.

Part Of A Broader Pattern

Dorman noted that recent crypto stock listings have generally performed poorly, citing steep declines in Coinbase, Bullish, Gemini and BitGo since their debuts. Circle remains one of the few exceptions, still trading above its IPO price despite falling well below its post-listing peak. Tuesday’s drop also came alongside a broader selloff in crypto-linked stocks as the Nasdaq fell 2%.