SpaceX just went public, and if you think it's just a rocket company, you might be missing the bigger picture. That's the message from Sylvia Jablonski, Chief Investment Officer at Defiance ETFs, as the firm launches a new leveraged fund aimed at capturing the full scope of Elon Musk's space empire.

Defiance rolled out the Defiance Daily Target 2X Long SpaceX ETF (SPCU) on Monday, a fund designed to deliver twice the daily returns of SpaceX shares (SPCX). But Jablonski wants investors to think beyond the launchpad.

"The market is still thinking about SpaceX as a rocket company," Jablonski said in an interview. "Six months from now, investors may increasingly view it as a multi-platform infrastructure company spanning launch, communications, defense, AI connectivity, and potentially space-based data services. There is so much more to SpaceX than just launches."

That broader narrative is central to Defiance's bullish thesis. While skeptics have questioned whether SpaceX's valuation already prices in overly optimistic growth, Jablonski argues that the wrong comparisons are being used.

"Many investors are likely comparing SpaceX to aerospace peers. We think that's too narrow," she said. "SpaceX touches communications, defense, connectivity, AI infrastructure, and space commercialization. Using traditional aerospace multiples alone may miss significant portions of the business."

She added that if Starlink subscriber growth, launch frequency, government contract wins, and commercial demand continue accelerating while the stock trades like a conventional aerospace company, "the market is underappreciating the scale of the opportunity."

Why Defiance Built SPCU

The decision to launch a leveraged SpaceX ETF reflects strong investor demand for targeted exposure to one of the most anticipated listings in recent memory. SPCU seeks to deliver 200% of SpaceX's daily performance, making it a tactical tool for active traders rather than a buy-and-hold vehicle.

"SPCU is designed for active traders and investors with strong short-term convictions," Jablonski said. "It provides amplified exposure to daily moves in SpaceX, allowing sophisticated investors a tactical tool around one of the most anticipated listings in recent memory."

For those seeking broader exposure to the innovation economy, Defiance also offers the Defiance Daily Target 2X Long XOVR ETF (XOVL). Jablonski emphasized the different purposes: "SPCU is for investors seeking targeted, amplified daily exposure to SpaceX. XOVL provides leveraged exposure to the broader crossover and private innovation ecosystem. Investors bullish on innovation generally may prefer XOVL, while those with specific conviction around SpaceX may prefer SPCU."

Volatility is part of the package, especially for a high-profile IPO. "Volatility is common in major IPOs," Jablonski noted. "Active traders may view pullbacks as opportunities to express short-term views, while longer-term investors may focus on the fundamental story and broader adoption trends. The investment horizon matters."

Beyond Rockets: Starlink and Connectivity

Jablonski believes the real growth story lies in Starlink and connectivity, not just launch services. "Launch will remain important, but I expect investors to increasingly focus on Starlink and connectivity-related businesses," she said. "The market may eventually view launch as the platform that enabled much larger opportunities."

She identified Starlink as the segment most likely to exceed Wall Street expectations. "The scale of global connectivity demand is enormous, and many regions still lack reliable broadband access," she said. "The addressable market is likely larger than many investors appreciate. There are also massive relevant geopolitical factors at play pushing demand."

Rather than simply competing with traditional telecom operators, Jablonski sees Starlink creating an entirely new market. "There are billions of people and vast geographies underserved by traditional infrastructure," she said. "Starlink expands connectivity rather than simply taking share."

An AI Infrastructure Play?

Jablonski also argues that SpaceX deserves a place in the AI infrastructure conversation, which is typically dominated by semiconductor, power, and data center companies.

"AI needs semiconductors, power, data centers, and increasingly connectivity," she said. "Data has to move globally. Space-based communications and resilient network infrastructure could become an increasingly important layer of the AI stack."

She added that investors may be underestimating how AI growth could benefit connectivity providers. "AI creates enormous demand for data transmission, connectivity, and network resiliency," Jablonski said. "Those trends may support businesses that enable the movement and delivery of information, not just those that generate it."

As a result, she believes SpaceX belongs alongside more traditional AI infrastructure names. "Investors often focus on chips and power, but AI also requires communication networks," she said. "Connectivity is infrastructure, and SpaceX has built one of the most significant connectivity platforms in the world."

Looking ahead, Jablonski thinks the valuation debate will fade as the business scales. "History has shown that investors often underestimate transformative platforms," she said. "Nobody knows the future, but if SpaceX continues executing at the pace we've seen, I think it's more likely investors will be discussing how large the opportunity became rather than how high the valuation looked on day one."