SpaceX Leveraged ETF Frenzy Tops $1.3 Billion in Trading Two Days After Launch
Summary
- 2x leveraged ETFs tracking SpaceX are drawing intense market interest after posting explosive trading volumes shortly after launch.
- The SPCH ETF recorded $1.3 billion in trading value on its second day, setting a record for the highest second-day trading volume for a newly launched ETF.
- After SpaceX’s Nasdaq listing at a valuation of about $1.7 trillion, retail interest has intensified, driving a rapid increase in trading of related ETFs and derivatives.
Forecast Trend Report by Period
Two 2x leveraged ETFs tracking Elon Musk’s space company SpaceX are drawing intense market interest, racking up explosive trading volume immediately after launch.
On June 16, Bloomberg ETF analyst Eric Balchunas wrote on X that trading in SpaceX leveraged ETFs had surged from $1 billion to more than $3 billion in a single day.
SPCH stood out in particular. The ETF posted $1.3 billion in trading value on its second day, the highest ever for an ETF on its second day after launch. That far exceeded the $500 million traded by BlackRock’s IBIT on its second day, even though IBIT went on to dominate the spot-Bitcoin ETF market.
Balchunas also wrote that every SpaceX leveraged ETF currently on the market had recorded more than $100 million in trading volume. He added that he had not expected demand to be this strong.
The frenzy accelerated after SpaceX listed on Nasdaq on June 12 at a valuation of about $1.7 trillion. Retail investor interest then intensified, driving a rapid increase in trading of related ETFs and derivatives.
Balchunas added that many people had doubted there were enough speculative investors to support so many leveraged ETFs at the same time. The market, he said, had shown otherwise.
