SpaceX's public debut has sparked one of the most aggressive ETF launch waves in recent memory. Ten leveraged ETFs tied to the aerospace giant hit the market on Monday, and the trading activity was, in the words of Bloomberg Intelligence analyst Eric Balchunas, 'bonkers.'
On Monday alone, 11 leveraged ETFs benchmarked to SpaceX generated more than $1 billion in volume. Even the lowest-volume fund among those tracked by Bloomberg Intelligence traded $26 million. That's a lot of action for funds that just started trading.
The launches come as SpaceX, trading under the ticker SpaceX (SPCX), begins attracting attention not only from retail traders but also from ETF issuers eager to capitalize on the stock's expected volatility. The menu now includes products that let investors bet both for and against the newly public company, with varying degrees of leverage and fee structures.
Issuers Race to Capture Demand
Among the latest entrants, ProShares launched the Ultra SpaceX ETF (SPCF), which seeks to deliver 200% of SpaceX's daily return. 'SPCF offers investors a way to magnify a bullish view on SpaceX without borrowing on margin,' said ProShares CEO Michael L. Sapir.
Tradr ETFs also joined the race with the Tradr 2X Long SpaceX Daily ETF (SPCM) and Tradr 2X Short SpaceX Daily ETF (SPCG), both carrying expense ratios of 1.49%.
Fee War Emerges Among New Funds
Competition is already extending beyond exposure and into pricing. Leverage Shares by Themes launched the 2X Long SpaceX Daily ETF (SPCH) and 2X Short SpaceX Daily ETF (SSPC), each charging 0.75% — the lowest expense ratio among the new offerings. According to Themes ETF Trust, SPCH's fee is roughly 38% below the industry average for comparable long leveraged SpaceX funds, while SSPC's fee is approximately 47% below similar inverse products.
Defiance ETFs launched the Defiance Daily Target 2X Long SpaceX ETF (SPCU) and Defiance Daily Target 2X Short SpaceX ETF (SPCQ), both with expense ratios of 1.31%. The firm said SPCU offers exposure to themes tied to SpaceX's AI infrastructure, Starlink broadband network, and reusable rocket operations.
GraniteShares also jumped in with the GraniteShares 2x Long SpaceX Daily ETF (SPAL) and GraniteShares 2x Short SpaceX Daily ETF (SNK). At 2.20%, SNK carries the highest fee among the new launches.
More Products, More Volatility
REX Shares and Tuttle Capital Management launched the T-REX 2X Long SpaceX Daily Target ETF (SPAX), while Direxion introduced the Direxion Daily SpaceX Bull 2X ETF (LOFF). Incidentally, Tuttle sold the 'SPCX' ticker to SpaceX ahead of the mega-IPO.
The ETF frenzy may only be getting started. Balchunas noted that around 120 ETFs already hold SpaceX shares, though all are actively managed funds that consciously chose to own the stock. As SpaceX becomes eligible for broader indexes, passive funds could eventually be forced buyers.
Interest has also spilled over into existing space-themed funds. The Tema Space Innovators ETF (NASA), which provided investors with pre-IPO exposure to SpaceX, attracted $146 million in inflows on Monday and had grown to $3.2 billion in assets as of Tuesday, according to FactSet.
