South Korean retail investors drove record demand for SpaceX shares, reaching $796 million in a single day.
Retail investors from South Korea have demonstrated an unprecedented appetite for SpaceX (SPCX) shares, purchasing $795.9 million worth of the company's stock on the very first day of trading — June 12. This surge in demand instantly turned SPCX into the most popular U.S. stock among Koreans in history: 14 million individual investors placed their bets on Elon Musk's space giant.
The scale of this frenzy becomes evident when compared to other assets. The net purchase volume of SPCX in a single trading session exceeded the three-month figures for giants such as Micron Technology ($748.3 million), the Nasdaq 100 ETF ($696.2 million), and Marvell Technology ($694.5 million). SpaceX surpassed each of these positions in just one day.
A phenomenon of "exit liquidity" or a new era of space investment?
Beyond the shares themselves, over the past month, Korean retail investors have poured an additional $301 million into an exchange-traded fund (ETF) linked to SpaceX. This underscores a massive and sustained interest in the company, which, in my view, is largely fueled by the "fear of missing out" effect: local investors were effectively cut off from participating in the largest IPO in history. Now they are trying to catch up through the secondary market.
However, not all analysts share this optimism. Some experts warn that the situation with SpaceX could become the largest "exit liquidity" event in market history. The mechanics are as follows: SPCX shares have surged 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, while insiders are preparing for the unlocking and sale of their stakes as early as July-August.
Risks for retail investors
Retail investors, as some analysts note, may mistakenly believe they are buying into the future of the space industry. In reality, they risk financing the largest "insider exit" of the entire cycle. The key question is how the quotes will behave after the unlocking begins. If demand from funds and retail cannot offset the selling pressure, we could see a sharp correction.
My analysis: The current frenzy around SPCX is a classic example of FOMO (fear of missing out) in the South Korean retail market, which has historically been known for its impulsiveness. However, the low free float and the upcoming unlocking of insider stakes create an extremely volatile structure. Investors should be extremely cautious: buying at the peak of the frenzy, when 96% of the shares are still under lock-up, is a high-risk strategy. The real picture will only become clear once the bulk of the shares floods the market.