Record frenzy: Korean investors bought $796 million worth of SpaceX (SPCX) shares on the first day of trading
South Korean retail investors demonstrated unprecedented demand for SpaceX shares, purchasing $795.9 million worth of the SPCX exchange-traded instrument in a single trading session on June 12. This result instantly made SpaceX the most popular U.S. stock among Koreans, surpassing even multi-month trading volumes for other blue chips.
The scale of interest is truly impressive. For comparison, net purchases by Korean investors over the previous three months for Micron Technology (MU) shares amounted to $748.3 million, for the Nasdaq 100 index fund (QQQ) — $696.2 million, and for Marvell Technology (MRVL) shares — $694.5 million. SpaceX surpassed each of these positions in just one day. Moreover, over the past month, retail investors have additionally invested $301 million in an ETF linked to Elon Musk's space company, highlighting the mass nature of the craze.
Why such a frenzy?
The key reason is the actual inaccessibility of the IPO itself for retail investors. The largest initial public offering in history was aimed at institutional players, creating a "hunger" effect among individuals. When the SPCX instrument, providing access to SpaceX shares, appeared on the market, Korean investors literally pounced on it, seeking to compensate for the missed opportunity.
The flip side: risks for retail investors
However, not everything is so rosy. Some analysts, particularly Crypto Rover, see a potential trap in this story. In his opinion, the current situation could become the largest "exit liquidity" event in market history. The mechanics are simple: SPCX shares surged 70% above the IPO price, but only about 4% of the shares are in free float. The remaining 96% are locked up with insiders who are preparing for unlocking in July-August.
Passive funds are forced to buy shares now, fueling growth, while insiders, on the contrary, are preparing to sell. Retail investors, thinking they are buying the future of the space industry, may in fact be financing the largest "insider exit" of the entire cycle. Further dynamics will depend on how quotes behave after the unlocking begins. This is a classic signal for caution.
Expert commentary: This case is a vivid example of FOMO (fear of missing out) in the retail market. Korean investors are historically prone to impulsive actions, but here the situation is exacerbated by the extremely low liquidity of the asset. Buying at 70% above the IPO price when 96% of shares will soon become available for sale is a high-risk game. I would recommend that investors carefully assess the risk-to-reward ratio before joining this race.