Latest SpaceX is looking to IPO this year and it is shaping up to be the largest IPO in history. Reports suggest a valuation of up to $1.75 trillion—eclipsing even Saudi Aramco’s record debut in 2019. The company could raise as much as $75 billion in the process.
Naturally, investors are scrambling for exposure. But since SpaceX is still private, you can’t just buy the stock. So the next best thing? SpaceX proxies—stocks, ETFs, and funds that have a stake in SpaceX or are in business with the company.
Besides SpaceX, Other like DXYZ stock also holds other marquee names like Databricks, xAI, Revolut, and OpenAI. So if you want broader exposure to high-growth private ventures beyond just SpaceX, this may interest you.
This means investors are paying significantly more to own the underlying private investments than what those investments are actually worth on paper.
Perhaps you could argue the premium is fair because DXYZ is unique—retail access to a VC portfolio is genuinely hard to come by. So it partly reflects an “access premium” and possibly the halo effect from the pending SpaceX IPO. But we’d say, only if you like the majority of the underlying private investments, not just SpaceX. Otherwise, you’re overpaying for a basket you don’t fully believe in.
The end result With fewer public stock holdings, SpaceX’s weighting in the ETF kept climbing mechanically. Originally the SpaceX stake was meant to be capped between 6% to 10% of the ETF. Now it has ballooned to 44.83%, a huge deviation.
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