We could soon see a SpaceX IPO. Rumors are intensifying that SpaceX could soon file its IPO prospectus—possibly as early as this week. Even more striking are projections that the offering could raise as much as $50 billion, implying a valuation near $1.8 trillion.
If that scenario unfolds, it would instantly become one of the most significant public offerings in history. But for investors, the bigger question isn't just whether SpaceX goes public—it's how to position ahead of the event.
While waiting for a direct opportunity to buy into SpaceX is one approach, many investors are instead turning to stocks and ETFs already benefiting from the current surge in IPO enthusiasm.
IPO ETFs Offer Diversified Exposure to Market Momentum
One, option is the First Trust US Equity Opportunities ETF (NYSEARCA: FPX). With an expense ratio of 0.61%, the FPX tracks hot IPOs, giving investors access to new stocks during their initial, most crucial days on the market. By buying it, not only can you avoid paying gobs of money for IPOs that may or may not work out, but you're also being exposed to multiple hot IPOs at the same time at a lesser cost.
Even with its share of high-profile IPO disappointments, FPX has delivered strong long-term gains, climbing from around $11 in 2009 to recent highs near $163. The key advantage is simple: whether individual IPOs succeed or fail, the overall excitement and capital inflows into the IPO market tend to support the ETF over time.
With the FPX, it doesn't matter if the stock is hot or a dud; the excitement surrounding IPOs continues to send the FPX to new highs.
A More Targeted Approach to Newly Public Companies
Investors can also consider the Renaissance IPO ETF (NYSEARCA: IPO). With an expense ratio of 0.6%, the ETF provides "investors with the largest, most liquid US-listed newly public company stocks in one security, reducing the risk of single-stock ownership while avoiding overlap with major core indices for optimal diversification across markets and time," as noted by Renaissance Capital.
Since November 2023, the ETF has rallied from a low of about $30 to its current price of $42.71. From here, we'd eventually like to see the ETF rally back to $60 a share.
Private Market Exposure Through Closed-End Funds
There's also the Fundrise Innovation Fund (NASDAQ: NYSE: VCX), which offers exposure to private companies expected to go public. The closed-end fund has surged more than 1,500% above its net asset value over the last week.
At the moment, AI accounts for about 44% of its portfolio and data infrastructure 23%, with the remainder invested in fintech, aerospace, gaming, software, and healthcare. The strong demand for VCX comes as its top holdings, such as Anthropic, Databricks, and OpenAI, are expected to go public this year.
Speculative Plays Tied to Space and AI Unicorns
Shares of Destiny Tech 100 (NYSE: DXYZ) have also surged sharply. Over the last few days, the closed-end management investment company gapped from about $24 to $34 and could see further upside on IPO buzz.
At the moment, it's running because of its exposure to private AI and space unicorns like SpaceX and OpenAI. If even a handful of these substantial IPOs go public at strong valuations, DXYZ could benefit from significant upside. The possibility of a SpaceX IPO, for example, has long been a source of speculation.
Positioning Ahead of a Historic IPO Cycle
In the end, the potential SpaceX IPO is acting as a catalyst—not just for one stock, but for an entire segment of the market.
Whether through diversified ETFs like FPX and IPO or more speculative vehicles like VCX and DXYZ, investors now have multiple ways to position themselves ahead of what could be a defining moment for the next generation of public companies.
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