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| By Beth Canova |
The biggest stock-market debut in history arrived this summer. And for once, ordinary investors thought they had a real shot at it.
The hype was deafening.
Everyone wanted in before the opening bell. Crypto exchanges promised a way to get there.
Then … the shares ran short.
Exchanges that had pre-sold tokenized SpaceX (SPCX) stock received far fewer real shares than they had promised.
Several canceled the allocations outright.
Some customers got nothing at all.
The real supply, as always, went to Wall Street first. That scramble felt like a letdown.
But zoom out, and it tells a far bigger story …
A new pipeline is forming to move U.S. stock exposure onto crypto networks. And the demand pouring into it is already too large to ignore.
What a "Tokenized Stock" Actually Is
A real-world asset, or RWA, is a traditional holding — a stock, a Treasury bond, etc. — issued as a digital token that trades on a blockchain.
On chain, these digital assets track the real stock 1:1 — just like the way an ADR lets you own a foreign company on the NYSE. You’ll also hear these RWAs called “tokenized equities.”
The difference from a normal share is the settlement layer.
A tokenized equity gives you the same exposure as the underlying share. A regulated broker holds the real stock in custody. You hold a token that represents it.
Instead of clearing through the DTCC, the token clears on crypto rails that run around the clock.
And, this summer, tokenized assets have become the fourth-largest category of real-world assets on a blockchain.
That matters if you already use Schwab or Fidelity. Those brokers match crypto on commissions and fractional shares. But not on 24-hour, weekend-included trading.
Here’s the key for crypto investors: The money chasing tokenized shares doesn’t move like crypto-native liquidity.
It moves the way institutional money moves: quietly, then all at once.
First Day Bust or Boom
Both means of investing in an IPO — through a broker or tokenized offering — still run into the same issue …
Volatility. And lots of it.
That’s nothing new for crypto assets. But it does mean investors will need to be careful. After all, there’s no sense fighting for day-one access to an asset that’ll crash the moment the hype runs out.
According to Weiss Ratings research, in the past 15 years only about 10% of IPOs have rewarded first-day investors.
That’s where my colleague Chris Graebe comes in.
He wanted to put the power of Weiss Ratings to use to see what the big winners had in common.
That work became a new Weiss rating system for brand-new stocks.
As a group, the stocks it flagged beat the average new listing by 25-to-1.
And this coming Tuesday, Oct. 6, at 2 p.m. Eastern, he’s going live to walk you through it … and name the one company this new system likes best right now.
It’s free to attend. Just be sure to save your seat now.
Then, don’t forget to check out all the key crypto updates your team of experts has highlighted for you this week …
S&P Global Is Making a Big Move into Crypto
The latest tokenization play proves Wall Street is taking DeFi more seriously. But there’s two questions potential investors need to ask before they dive in.
McDonald’s AI Pricing Engine: Who Really Pays for Your Big Mac?
The Golden Arches now let an algorithm set your price. Here’s what shareholders should watch.
ZCash’s Biggest Lesson for Investors Isn’t Privacy. It’s Diligence
The hidden flaw and fast fix in this leading crypto is important to note. Because the deeper lesson is one every investor should keep in mind.
Robinhood’s New Blockchain Is Already Creating Crypto Winners
And it’s the first indication that Robinhood’s big crypto push is beginning to pay off.
Stablecoins Are Becoming Crypto’s Biggest Business
Not all issuers are created equal, however. Here’s who’s profiting, and who your attention should be fixed on.
Deloitte Got Fooled by a $290,000 AI Fake. You Could Be Next.
AI just broke the traditional model for financial trust. Here’s why the blockchain is the only defense against AI fraud.
Anthropic's IPO Numbers Are Out. Crypto Traders Already Bet $2 Trillion
The numbers are finally real. And they're staggering. Here’s what investors should watch.
Crypto Trading Is Booming. Here’s Who’s Getting Paid
Crypto used to be a market dominated by hype. But this latest cycle has proven that popularity doesn’t translate into profits. These are the crypto projects making real revenue … and the tokens actually capturing it.
Bitcoin Set to Close Second-Best Q3 in History
Bitcoin’s (BTC) rally seems to have halted. But zoom out, and you’ll see it’s had the second most successful Q3 in its history. Not bad for a bear cycle! Here’s how traders and HODLers should prep for Q4.
But that’s all for this week! Be sure to check for your next Weiss Crypto Daily update tomorrow.
Best,
Beth Canova
