SpaceX (SPCX) storms to new heights: +32% after record IPO and wave of ETFs
The SpaceX (SPCX) stock market is performing more than successfully. In just the second day of trading, the price of shares surged 32% from the offering price of $135, reaching $178. This rapid rise has attracted attention not only from retail investors but also from major players, who have begun actively creating leveraged instruments based on the new ticker.
The company's IPO, organized with the participation of Goldman Sachs, became the largest in world history, raising approximately $75 billion. For comparison, the previous record set by Saudi Aramco in 2019 was $29.4 billion. The order book was oversubscribed more than three times, with total investor demand exceeding $250 billion. By Friday, the share price had soared to $160.95 (+19%), and by Monday it reached $192.
Wave of ETFs: From Hedge Funds to Retail Speculators
The market instantly reacted to the frenzy. On Monday, asset manager GraniteShares launched two exchange-traded funds: the 2x Long SpaceX Daily ETF (SPAL) and the 2x Short (SNK). Provider Defiance followed suit with its double-long leverage strategy (SPCU). The management fee for SPAL is 1.50%, and the instrument rebalances positions daily, making it suitable exclusively for short-term trading rather than long-term investments.
In total, regulators have received about 25 applications to launch instruments related to SpaceX. Giants such as ProShares, Direxion, and Leverage Shares have joined the race. Notably, Defiance's SPCL fund, launched earlier, saw trading volume of around $10 million on its first day and gained about 46% even before SPCX itself hit the exchange.
Risks and Realities: Who Is Actually Buying?
The massive volume of orders remains the key question: does the second wave of purchases reflect genuine sustainable demand, or is the market still dominated solely by speculative froth? Due to daily rebalancing, leveraged funds can incur losses even when SPCX rises over a long-term horizon. The risk will increase significantly when more shares hit the market in the coming weeks.
On the other hand, some funds focused on SpaceX are not designed for short-term speculation at all. ARK Invest reported that it now holds SPCX in four active ETFs: ARKX, ARKQ, ARKK, and ARKW. This followed an initial investment through the closed ARK Venture Fund in 2023. The asset manager acquired approximately 3.3 million shares for about $444 million during the SPCX debut, and SpaceX's share in the ARK Venture Fund reached 11.38%, becoming the fund's largest position.
Cryptalist Analysis: The market is clearly overheated with emotion. SpaceX's $2.3 trillion market cap is not just a business valuation but a premium for the "Musk factor" and the asset's uniqueness. However, as the history of leveraged funds shows, most retail investors come here not for dividends but for quick profits. The first serious correction could be extremely painful for those who have not factored in 30-40% daily volatility into their strategy.