Record-breaking frenzy: Korean investors poured $796 million into SpaceX (SPCX) shares in a single day
Retail investors from South Korea demonstrated unprecedented demand for SpaceX (SPCX) shares on the very first day of trading. On June 12, the net purchase volume of Elon Musk's company's securities reached a staggering $795.9 million. This figure instantly propelled SpaceX to the top spot in popularity among US stocks on the Korean market — with 14 million transactions completed in a single session.
The scale of this phenomenon becomes clear when compared to other assets. For context: over the previous three months, net inflows from Korean retail investors into Micron Technology (MU) shares totaled $748.3 million, into the Nasdaq 100 index ETF (QQQ) — $696.2 million, and into Marvell Technology (MRVL) securities — $694.5 million. SpaceX surpassed each of these three-month volumes in just one trading day.
The Phenomenon of Demand for SpaceX
Interest in the space giant is widespread. In addition to direct purchases of SPCX shares, Korean investors have poured another $301 million into an exchange-traded fund (ETF) linked to SpaceX over the past month. This underscores that the company has become a true mainstream asset, capturing the attention of a broad audience.
A key factor behind this frenzy is the effective exclusion of retail investors from participating in the largest IPO in history. Since the bulk of shares were allocated to institutional players, individual investors were cut off from the primary offering. The stock market listing became their only opportunity to gain exposure to the legendary brand.
Hidden Risks and the "Liquidity Trap"
However, not all analysts share the euphoria. A number of experts warn of potential negative consequences. The mechanics of the SPCX offering are concerning: shares have risen 70% from the IPO price, but only about 4% of the shares are in free float. The remaining 96% are locked up for insiders and early investors.
Passive funds are forced to buy shares to maintain index structures, while insiders are preparing to unlock their stakes as early as July-August. This creates a classic "exit liquidity" scenario, where early holders sell assets to a new wave of buyers.
Retail investors, believing they are buying into the future of the space industry, may in fact be financing the largest insider exit of the entire market cycle. Future dynamics will critically depend on the behavior of quotes after the unlocking begins.
Analyst's opinion: While the market is gripped by euphoria, it is worth remembering that the high concentration of locked-up shares and limited free float create an extremely volatile environment. Investors entering positions at current levels should assess not only SpaceX's growth potential but also the risks of a sharp correction when insider sales are activated.