This downturn aligns with a trend of newly-public digital asset firms experiencing declines post-launch, according to Arca's Jeff Dorman.
By Krisztian Sandor|Edited by Nikhilesh De Jul 7, 2026, 7:35 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Securitize CEO Carlos Domingo at ETHConf 2026 (Margaux Nijkerk/ CoinDesk)SummaryShow- The stock of Securitize (SECZ) has dropped roughly 40% since its SPAC merger was finalized last week.
- This decline occurs amid a surge in institutional interest in tokenization, a rapidly expanding area in crypto.
- According to Arca's Jeff Dorman, this movement seems more influenced by SPAC dynamics than by any weakening fundamentals.
Securitize (SECZ), a tokenization expert backed by BlackRock, has struggled since its public debut last week, despite being positioned as a key player in one of the most promising trends in crypto on Wall Street.
The company's stock saw a drop of up to 25% on Tuesday, although it managed to recover some losses; overall, it is down about 40% since merging with the special purpose acquisition company Cantor Equity Partner II.
This notable decline contrasts sharply with the increasing interest in tokenization, which is emerging as one of the fastest-growing blockchain applications on Wall Street. Major financial institutions, including BlackRock, Franklin Templeton, and JPMorgan, are enhancing their efforts to migrate traditional assets like U.S. Treasuries, funds, and equities onto blockchain platforms. Citi has estimated that the market for tokenized assets could reach $5.5 trillion by 2030, while BCG and Ripple anticipate it could approach $19 trillion by 2033.
SPAC Dynamics
The recent selloff appears largely unrelated to the fundamentals of Securitize or any particular news, as noted by Jeff Dorman, chief investment officer at Arca.
"We don't see any significant negative fundamental catalysts," Dorman remarked. "Such substantial price movements are typical following SPAC transactions because the investor base shifts from fixed-income-oriented SPAC investors to new, long-term equity holders focused on fundamentals."
Typically, stocks of SPAC mergers exhibit volatility in their initial trading days. These investment vehicles gather capital first and pursue acquisitions later, allowing private firms to enter public markets through a merger with a shell company. However, once the merger is finalized, the investor composition often changes, with SPAC arbitrage investors transitioning to public equity investors assessing the company's fundamentals. This shift can lead to dramatic price fluctuations, especially when the stock's float is limited or if it had previously increased in value before the merger.
Crypto IPO Trends
Dorman also pointed out that the poor performance of recent crypto IPOs has made investors more wary.
"In light of the dismal results from recent crypto IPOs — including Coinbase (COIN), Bullish (BLSH), Gemini (GEMI), BitGo (BTGO), and Circle (CRCL) — this reaction is not unexpected," Dorman explained.
Since its IPO in February, BitGo has plummeted 70%. Gemini, created by the Winklevoss twins, has seen an 85% decline since its launch in September. Bullish, which owns CoinDesk, has dropped over 70% from its debut price of $90 in August 2025 and is now trading below its IPO price of $37. Circle (CRCL) shares are still more than double their IPO price of $31 but are slightly below their opening trade of $69.50 and down 77% from their peak in June 2025. Meanwhile, Coinbase (COIN), which went public through a direct listing in April 2021, is now trading 56% lower than its initial price of $381.
Tuesday's decline coincided with a generally poor performance for crypto-related stocks as the tech-heavy Nasdaq dropped 2%. CRCL fell 5%, BTGO decreased by over 4%, and Figure (FIGR), the blockchain company founded by former SoFi CEO Mike Cagney, dropped nearly 8.8%.
Read more: Securitize eyes acquisitions with $400 million war chest after going public, CEO says
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SpaceX IPO Drives Tokenized Equity Volumes to Record as Stablecoin Market Cap Falls
SpaceX IPO Drives Tokenized Equity Volumes to Record as Stablecoin Market Cap Falls
Stablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B.
By CoinDesk Research6 hours agoStablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B.
Why it matters:
Stablecoin market cap fell to $312B in June, its largest monthly drop since TerraUSD, while tokenized equity volumes surged 145% to a record $3.86B.
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