Record-breaking frenzy in South Korea: investors bought $796 million worth of SpaceX shares in a single day
South Korean retail investors demonstrated an unprecedented appetite for SpaceX (SPCX) shares on the very first day of trading on June 12. Net purchases amounted to a staggering $795.9 million, instantly making SPCX the most popular U.S. stock among local individual investors in a single trading session. A total of 14 million individual investors participated in the transaction.
Scale of the Phenomenon: SpaceX Breaks Three-Month Records
To grasp the scale, it is enough to look at comparative data. Over the previous three months, net purchases by Koreans of Micron Technology (MU) shares totaled $748.3 million, for the Nasdaq 100 index ETF (QQQ) — $696.2 million, and for Marvell Technology (MRVL) shares — $694.5 million. SpaceX surpassed each of these figures in a single day. Additionally, over the past month, another $301 million was invested in a SpaceX-linked exchange-traded fund (ETF), highlighting the massive interest in Elon Musk's space company.
Such a frenzy is explained by the fact that local investors were effectively cut off from participating in the IPO itself — the largest in history. Therefore, the listing of SPCX on the secondary market became a "window of opportunity" for them, which they utilized with maximum intensity.
The Flip Side: Warnings About "Exit Liquidity"
However, not everything is so clear-cut. Some analysts, including expert Crypto Rover, see a potential threat in this story. In his opinion, the situation with SpaceX could become the largest "exit liquidity" event in market history, where early holders sell assets to a new wave of buyers.
The mechanics are as follows: SPCX shares rose 70% from the IPO price, but only about 4% of the securities are in free float. The remaining 96% are locked up. Passive funds are forced to buy shares, while insiders prepare for the unlocking and sale of their stakes as early as July-August. Thus, 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.
My expert opinion: The SPCX story is a classic example of FOMO (fear of missing out) in the retail market. Until the unlocking begins, we see only euphoria. The real dynamics will become apparent precisely in July-August, when the bulk of shares flood the market. Investors should be extremely cautious and not succumb to emotions, assessing the fundamental risks of such concentration.