SpaceX IPO set to trigger Monday launch of leveraged ETFs

Wall Street is already preparing to turn SpaceX into a leveraged trading vehicle days after its expected market debut.

Nearly a dozen exchange traded funds tied to Elon Musk’s rocket company are slated to launch Monday, shortly after SpaceX’s planned Friday IPO, according a Bloomberg report.

The products, from issuers including ProShares, Leverage Shares, Defiance ETFs, GraniteShares, REX Shares, Direxion, and Tradr ETFs, are designed to deliver twice the daily long or inverse performance of SpaceX shares.

The launches would give traders an immediate way to amplify bets on one of the most anticipated public listings in years. More than 20 SpaceX linked ETF proposals have already been filed this year, ranging from leveraged and inverse products to options based strategies.

The rush reflects how quickly ETF issuers are moving to monetize demand for exposure to major private technology companies as they enter public markets. Many of the SpaceX products have similar structures, making speed, distribution, and marketing key points of competition.

Bloomberg Intelligence analyst James Seyffart said being first, or close to first, matters for issuers trying to gather assets quickly after a major IPO.

Investors are not expected to gain access to the products on SpaceX’s first trading day. Cboe Global Markets and the New York Stock Exchange have reportedly asked issuers to delay their launches until Monday.

The scramble echoes the launch of spot Bitcoin ETFs in January 2024, when nearly a dozen issuers debuted similar products on the same day. BlackRock’s IBIT later emerged as the dominant fund in the category.

The SpaceX rush also points to a broader shift in ETF product development. Issuers have already filed proposals tied to Anthropic and OpenAI, even though neither company has gone public.

If those companies pursue listings, Wall Street’s race to package the next generation of technology giants could become even more aggressive.