Investors around the world are racing to gain access to SpaceX as the company moves closer to its long-awaited stock market debut.
The excitement surroundingElon Musk's aerospace gianthas sparked a surge in demand from both institutional and retail investors, many of whom have spent years waiting for an opportunity to gain exposure to one of the world's most closely watched private companies.
According to an X post from Gagola Value Capital, run by two British amateur investor brothers, '$14 billion has poured into SpaceX-linked funds since Musk confirmed the IPO...The hype is unlike anything I've seen.' Yet despite the enthusiasm, direct access to SpaceX shares remains out of reach for most investors.
Until the company officially goes public, only a select group of large financial institutions and wealthy individuals can buy shares directly. As a result, ordinary investors are turning to alternative routes, from specialist investment funds to related aerospace stocks and even prediction markets, in an effort to benefit from the growing frenzy.
For investors unable to purchase SpaceX shares directly, several workarounds have emerged, asperreports. One of the most common routes is the secondary market. This allows employees and early investors who already own SpaceX shares to sell them privately. Transactions are negotiated directly between buyers and sellers, often at prices agreed by both parties rather than through a public exchange.
Another increasingly popular option is exchange-traded funds, better known as ETFs. These investment funds trade on stock exchanges and can be bought by ordinary investors. Some ETFs have developed structures that allow them to hold exposure to SpaceX, giving investors an indirect stake in the company's fortunes.
Joel Shulman, founder of ERShares, said interest in his firm's XVOR fund has surged as investors seek access to SpaceX. The fund reportedly has around 15 per cent of its holdings linked to SpaceX.
'We've increased assets under management by five times, and I'm fairly certain we have the largest percentage weight in SpaceX now of any ETF,' Shulman said.
He added: 'This is by far themost exciting IPOthat we've seen.' However, not everyone is comfortable with the structures used to gain exposure.
In some cases, the investment is held through legal entities that own the actual SpaceX shares, creating a layer of complexity that some investors find difficult to navigate.
Source: International Business Times UK
