Crypto stocks outperform as flows rotate from tokens

Investors shift to regulated crypto stocks: underperformance, rights, oversight

Investor capital is rotating from newly issued tokens toward regulated crypto stocks as recent launches struggle to sustain listing prices. The draw is enforceable shareholder rights, audited disclosure, and mature oversight. Equity exposure also aligns crypto risk with recognizable business models and financial reporting.

This shift reflects a preference for governance and accountability over token incentives that can decay quickly. Listed companies must comply with exchange rules and periodic reporting, which some investors view as a more durable foundation. The rotation has coincided with weaker sentiment in token markets and renewed interest in equity proxies.

What this rotation means for exposure, risk, and allocation

Policy momentum could further influence allocations. As reported by AOL, the U.S. could approve a more complete crypto regulatory framework this year, a step that may accelerate institutional adoption of tokenized equities and tokenized real-world assets (RWAs) under clearer rules.

Performance dispersion is central to the rotation. As reported by Cointelegraph, research shared by market participants indicated that more than 80% of token launches in 2025 traded below their listing price and often dropped by 50–70% within about 90 days. Against that backdrop, one executive summarized evolving preferences: “cleaner ownership, clearer disclosure, and a path to enforceable rights,” said Maksym Sakharov, WeFi cofounder/CEO.

Institutions are prioritizing infrastructure and tokenization over speculative listings. As covered by BeInCrypto, Polygon’s Maria Adamjee framed the question as sizing the asset class, while OpenEden’s Jeremy Ng emphasized efficiency gains from putting traditional products on-chain. This focus tends to favor compliant issuers, custody providers, and on-chain fund rails.

In allocation terms, regulated crypto equities offer indirect exposure tied to earnings and operations, while tokens deliver direct protocol exposure but with higher idiosyncratic and lifecycle risks. Tokenized equities and RWAs can bridge both worlds if structures provide real rights and regulated custody. Position sizing, liquidity constraints, and jurisdictional rules remain decisive variables.

Beneficiaries and tokenization: listed crypto firms, tokenized equities, RWAs

Publicly listed beneficiaries: infrastructure plays; MicroStrategy (MSTR), Coinbase (COIN)

Publicly listed firms remain primary beneficiaries of rotation away from new tokens. MicroStrategy (MSTR) offers de facto Bitcoin-treasury exposure via a listed equity wrapper, while Coinbase (COIN) concentrates exchange, custody, and compliance capabilities that institutions require.

At the time of this writing, based on delayed NasdaqGS quote data, Coinbase Global (COIN) closed at 171.35 USD on February 20, with after-hours trading around 171.05 USD. This contextualizes investor interest without implying any outlook.

As infrastructure demand grows, exposure often gravitates to enterprises providing secure custody, regulatory interfaces, and fiat on/off-ramps. These businesses can capture fee-based revenues that differ from token-only bets, though they remain correlated to broader crypto activity.

Tokenized products: real shares vs synthetics; rights, custody, SEC status

Tokenized equities span two models. As reported by Forbes Tech Council, some tokens represent claims on real shares with potential voting and dividend rights, while others are synthetics or derivatives that track prices without conferring corporate rights. The distinction affects governance, counterparty risk, and recourse.

Editorially, the core risk in tokenized stocks is legal certainty around ownership, venue, and smart-contract design. “Legal protections can be uncertain or lacking,” said Dr. James Royal at Bankrate, noting that safeguards depend on issuer structure and jurisdiction.

Regulatory status is becoming clearer in major markets. As covered by InvestmentNews, U.S. Securities and Exchange Commission commentary has reiterated that tokenized securities remain securities under U.S. law, implying disclosure, transfer restrictions, and custody under applicable rules. That framing supports enforceable rights when structures are fully backed and properly custodied.

For RWAs, similar principles apply: claims on off-chain assets require transparent legal wrappers, regulated custodians, and jurisdiction-aware transfer controls. Common checks include verifying the issuer’s licensing, custody arrangements, and documentation of rights such as dividends, redemptions, and voting.