Euphoria ahead of SpaceX IPO is also inspiring space ETFs – so European investors can be part of it

• SpaceX IPO fantasy drives space ETFs
• Tema ETF offers indirect pre-access to SpaceX
• European investors are turning to UCITS alternatives

The anticipation of SpaceX’s upcoming IPO is currently putting the space investment sector in a real mood of optimism. While industry giants such as Jeff Bezos’ Blue Origin or Boeing and Lockheed Martin’s United Launch Alliance joint venture continue to compete for market share, a dynamic race has developed on the financial markets for the best positioning in special exchange traded funds (ETFs). A clear picture emerges: the expectations surrounding the company Elon Musk acts as a massive price driver for the entire space economy, although access to the coveted shares remains very limited before the official IPO.

Astronomical assessment ahead

The enormous interest in SpaceX’s expected IPO is closely linked to the dimensions of the rumored transaction. According to media reports, the group could be valued at up to $1.75 trillion in its IPO and raise between $50 and $75 billion in fresh capital. The scale of the possible IPO would go beyond even historical standards on the capital market: the largest IPO in history to date comes from the Saudi oil company Saudi Aramco, which raised around $25.6 billion in 2019. SpaceX could now significantly exceed this mark.

The high valuation results not only from the dominant position in rocket launches, but also increasingly from the rapidly growing satellite internet business around Starlink as well as the group’s ambitious AI and infrastructure projects. For many investors, SpaceX is no longer just a space company, but rather a potential global infrastructure and technology group of the next generation.

Unique early access through the NASA ETF

Within the ranks of specialized space funds, the Tema Space Innovators ETF, which was only launched at the end of March, occupies a special position. As Morningstar data shows, this is the only pure-play space fund that offers direct access to SpaceX shares before the IPO. This is made possible by a special purpose vehicle that pools privately owned shares. “You can’t have a space ETF without SpaceX. It’s like having a semiconductor ETF without NVIDIA,” said Yuri Khodjamirian, chief investment officer of Tema ETFs, in an interview with Barron’s. “We felt it was worth securing private equity before going public.”

The strategy appears to be working, as SpaceX, with a weighting of 11.1 percent, represents the fund’s largest position, which has already gained around 45 percent since its trading debut. In addition to the industry leader, the actively managed fund relies on other heavyweights such as Rocket Lab, Planet Labs and Firefly Aerospace.

Industry-wide price gains even without direct participation

Despite the exclusivity of the NASA ETF, other market participants are also benefiting massively from the current euphoria. The index-based Procure Space ETF has already recorded an increase of over 52 percent this year. Although the fund does not currently hold SpaceX directly, the index provider VettaFi has already adjusted the rules so that access is possible from the first trading day of the IPO. Andrew Chanin, CEO of Procure Holdings, also emphasized to Barron’s an indirect stake through a position in EchoStar, a partner and investor in SpaceX. Chanin described the planned IPO as “positive for the capital markets and the global space economy.” Cathie Wood’s actively managed ARK Space & Defense Innovation ETF has also gained around 19 percent since the beginning of the year.

Explosive market growth expected

The current market euphoria is based on long-term forecasts from leading analysis houses, which attribute significant growth potential to the space sector. Morgan Stanley predicts that the global space economy could reach a volume of more than $1 trillion by 2040. Satellite-supported broadband internet is seen as a key growth driver. The management consultancy Roland Berger also points to the industry’s enormous expansion potential in its study “Catching Up in Space”. Analysts expect that the global market for space-based infrastructure and services could grow to around two trillion euros by 2040, after the current volume is around 500 billion euros. Private space companies and commercial applications in particular are increasingly driving the dynamic forward. For investors, the sector is therefore still seen as a long-term infrastructure and technology trend, despite the short-term IPO euphoria.

This is how European investors can benefit from the space boom

Against this background, the market for space investments will be characterized by a high frequency of new issues in 2026; for the moment, the sector appears to be firmly on course towards the stratosphere.

However, despite the current SpaceX euphoria, access to many US space ETFs remains restricted for European investors. Funds such as the “NASA” ETF or the “UFO” ETF are often not directly tradable for many private investors in Germany due to the European PRIIPs requirements and the lack of key information sheets (KID). Anyone who still wants to bet on the long-term growth of the space economy usually has to turn to UCITS-compliant alternatives that are available on European stock exchanges.

An example of this is the VanEck Space Innovators UCITS ETF, which brings together companies in areas such as satellite communications, space technology and rocket engines.

Since SpaceX itself is not yet listed on the stock exchange, many investors only have indirect access via suppliers, infrastructure companies or investment companies. European companies such as Airbus are also increasingly benefiting from the growing interest in space and satellite technologies. For investors, a broadly diversified approach can therefore be a way to benefit from the long-term growth of the space economy while avoiding regulatory restrictions.

Claudia Stephan, editorial team at finanzen.net

This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.

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