Chart of Day: Best Ways to Trade a Potential SpaceX IPO

Space X IPO

How Investors Are Positioning for a Potential SpaceX IPO

Interest surrounding a potential SpaceX IPO is rapidly building across financial markets. Rumors suggest that SpaceX could soon file its IPO prospectus, possibly within days, with projections that the offering could raise as much as $50 billion, implying a valuation approaching $1.8 trillion.

If those projections materialize, it would instantly rank among the largest public offerings in history.

For investors, however, the key question isn’t just whether the SpaceX IPO happens—it’s how to position ahead of the event.

While many investors may prefer to wait for a direct opportunity to purchase SpaceX shares, others are already exploring ways to gain exposure to the broader IPO market momentum through ETFs that track newly public companies.


Strategy #1: First Trust US Equity Opportunities ETF (FPX)

One way to benefit from the excitement around a potential SpaceX IPO is through the First Trust US Equity Opportunities ETF (FPX).

With an expense ratio of 0.61%, FPX tracks newly public companies during their early trading periods, giving investors exposure to IPOs during what is often their most active phase.

This approach offers several advantages:

  • Diversification across multiple new IPOs
  • Reduced risk compared to buying a single newly public stock
  • Exposure to strong capital flows entering the IPO market

Over the long term, the ETF has delivered impressive gains. Since 2009, FPX has climbed from roughly $11 per share to highs near $163, highlighting the powerful momentum that can build in the IPO market over time.

The key takeaway: even if some IPOs disappoint, overall IPO enthusiasm can still drive ETF performance higher.

FPX ETF chart showing long-term gains

Image alt text: FPX ETF chart showing growth during IPO market cycles


Strategy #2: Renaissance IPO ETF (IPO)

Another option for traders watching the SpaceX IPO is the Renaissance IPO ETF (IPO).

With an expense ratio of 0.60%, this ETF focuses on the largest and most liquid newly public companies listed in the U.S..

According to Renaissance Capital, the fund is designed to give investors exposure to recent IPOs while avoiding heavy overlap with traditional major indices, helping improve diversification.

The ETF has already shown notable momentum:

  • November 2023 low: ~$30
  • Recent price: ~$42.71

From a technical standpoint, traders are watching for a potential move back toward $60 per share, which could represent the next major upside target if IPO activity accelerates.


Why IPO ETFs Can Benefit From Major Listings

Major IPO events often create waves of capital inflows into the broader IPO market. Even when individual offerings underperform, investor excitement around new listings can still lift ETFs focused on newly public companies.

If a SpaceX IPO ultimately materializes, it could significantly increase attention and liquidity in this segment of the market.

For traders and investors alike, positioning in IPO-focused ETFs may provide a diversified way to participate in the trend without relying on a single high-profile listing.


About Ian Cooper

Ian Cooper is an experienced trader who combines technical analysis, fundamental research, and market news to help individual investors identify potential trading opportunities.

Through his Premium Options Strategies, Ian provides structured insights designed to help traders navigate market volatility and uncover high-probability setups.

👉 Learn more about Ian Cooper’s strategies:

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⚠️ Disclaimer: This content is for educational purposes only and should not be considered investment advice. Trading involves risk and is not suitable for all investors. Past performance is not indicative of future results.

FFR Trading Team