Catching Up to Musk's Rocket! SpaceX Plans to List in June, Space-Themed ETF Sees Highest Quarterly Inflows Since 2019

The news of SpaceX's impending entry into the public market is sparking a capital surge across space-concept stocks.

According to Bloomberg, citing sources familiar with the matter, SpaceX has secretly filed for an IPO, with its target valuation raised to over $2 trillion, and could list as early as June this year.

This news has ignited investor enthusiasm – the space-themed fund Procure Space ETF attracted nearly $175 million in the first quarter, marking the highest quarterly inflow since its inception in 2019.

Procure Space ETF currently indirectly holds a small stake in SpaceX through Charlie Ergen's satellite and internet service provider EchoStar Corp.

Meanwhile, the basket of U.S. space-concept stocks tracked by Bank of America Merrill Lynch has risen 23% year-to-date, significantly outperforming the S&P 500's 3.4% decline and the Nasdaq 100's 4.2% decline.

The SpaceX Effect: Trillion-Dollar Valuation Draws Capital into the Space Sector

SpaceX's listing expectations are the core driver of the current capital boom in the space sector.

According to data compiled by Bloomberg, Procure Space ETF recorded net inflows of nearly $175 million in the first quarter, the highest quarterly level since its establishment in 2019. With the fund's market value around $415 million, it is not large relative to the inflow, indicating the concentration of capital in this surge.

Andrew Chanin, CEO of ProcureAM, stated that Procure Space ETF currently indirectly holds a small stake in SpaceX through Charlie Ergen's satellite and internet service provider EchoStar Corp., which holds a small share of the company founded by Musk.

"The market's frenzied sentiment around what could be the largest IPO in history is having a tangible impact," said Philip Blancato, Chief Market Strategist at Osaic Holdings. As the 15th largest institutional holder of Procure Space ETF, he revealed that his investment advisory firm is receiving numerous client inquiries seeking exposure to SpaceX-related investment opportunities.

Matt Maley, Chief Market Strategist at Miller Tabak + Co., directly attributes this surge to SpaceX's impending IPO and Musk's star power. "The involvement of prominent billionaires in space has brought unprecedented market attention to the sector in decades," he said.

Space Concept Stocks Outperform Major Indices This Year

Among the basket of space-concept stocks tracked by Bank of America, the most prominent gain was from satellite Earth mapping company Satellogic Inc., with a year-to-date increase of nearly 280%.

The company is backed by Steven Mnuchin's Liberty Strategic Capital and Cantor Fitzgerald LP, which is managed by the children of U.S. Secretary of Commerce Howard Lutnick.

Other stocks with significant gains include satellite communication companies Iridium Communications Inc. and Planet Labs PBC.

This strong performance contrasts sharply with the broader market – the S&P 500 index has fallen 3.4% year-to-date, and the Nasdaq 100 index has fallen 4.2%, while the overall basket of space-concept stocks has risen 23%.

Space Race 2.0: Lunar Development and National Strategy Provide Long-Term Support

In addition to the SpaceX IPO expectations, the global space race's escalation also provides deeper fundamental support for the sector.

Four astronauts from NASA's Artemis II mission recently completed humanity's first lunar journey in over 50 years and set a record for the farthest flight distance in human history this past Monday. Meanwhile, both China and the United States are investing billions of dollars to advance their crewed lunar programs, further stimulating investment enthusiasm in the entire industry.

"A genuine Space Race 2.0 is unfolding, with the core question being who will be the first to establish a permanent base on the Moon," Chanin said.

Key contractors for the Artemis II mission include Boeing Co., Lockheed Martin, Northrop Grumman, and L3Harris Technologies, which are also core defense contractors for the U.S. military. The high overlap between the space and defense sectors further broadens the investment logic for this segment.

Blancato pointed out that this generation of space investment is vastly different from past defense logic: "You are no longer building guns and bombs, but rather satellites and drones, which is a completely different way of thinking from what we've done before."

Investment Focus Shifts: From Space Tourism to Satellites, Data Centers, and Lunar Infrastructure

Despite the overall warming of the space sector, the specific areas of investor focus have shifted significantly.

Chanin noted that space tourism concepts that attracted attention a few years ago, including Blue Origin, founded by Amazon founder Jeff Bezos, and Virgin Galactic Holdings, founded by Richard Branson, have gradually faded from market focus.

Investors' attention is now turning to satellites, communication technology, and emerging areas such as space data centers and lunar infrastructure.

This trend reflects a market repricing of the commercialization path of the space economy: shifting from early conceptual hype centered on space tourism to hard-tech infrastructure with substantial business models and national strategic backing.

Philip Blancato admitted that even five years ago, investing in space-themed funds like Procure Space ETF seemed like a "crazy" idea to him – but now, with continued government stimulus policies, his view has completely changed.