Leverage Shares launches 2x long and short SpaceX ETFs after IPO

Leverage Shares by Themes launched the first pair of leveraged and inverse single-stock ETFs tied to SpaceX on Wednesday, giving traders tools to bet both for and against the rocket company just days after its historic market debut.

"By launching both SPCH and SSPC simultaneously, we're giving investors efficient, low-cost tools to express either a bullish or bearish view on one of the world's most closely watched companies," said Paul Marino, chief revenue officer at Leverage Shares by Themes.

The Leverage Shares 2X Long SpaceX Daily ETF (SPCH) seeks 200% of the daily return of SpaceX common stock, while the Leverage Shares 2X Short SpaceX Daily ETF (SSPC) targets negative 200% daily performance. Both begin trading on the New York Stock Exchange on June 15 with a 0.75% expense ratio, which the firm called industry-low for leveraged single-stock products. The funds use swaps, options and other derivatives rather than holding SpaceX shares directly.

The launch caps a frenzied week for SpaceX-linked products. ProShares debuted its Ultra SpaceX ETF (SPCF) on June 12, targeting 2x daily returns, joining a crowded field that includes the Direxion Daily SpaceX Bull 2X ETF (LOFF), Defiance Daily Target 2X Long SpaceX ETF (SPCU) and GraniteShares 2x Long SpaceX Daily ETF (SPAL). The rush follows SpaceX's initial public offering, which raised $75 billion by selling 555.6 million shares at $135 each, valuing the company at $1.8 trillion. Investor orders topped $250 billion, making the deal nearly four times oversubscribed, according to Reuters.

The ETF blitz reflects Wall Street's scramble to capture retail and institutional demand for SpaceX exposure at a time when only about 7% of shares are expected to be freely tradable initially. Strategas Chief ETF Strategist Todd Sohn called the competition the "Super Bowl of ETF advertising." Leverage Shares, which manages more than $2 billion in assets across 160-plus exchange-traded products, previously became the first issuer to launch a leveraged ETF tied to a newly public company following the IPO of Cerebras Systems earlier this year. MSCI said Monday it will apply fast-entry rules for large IPOs, potentially allowing SpaceX to join key indexes within 10 trading days of listing.

This article is for informational purposes only and does not constitute investment advice.