SpaceX’s $75 billion IPO could add pressure on crypto markets as retail investors prepare to chase one of Wall Street’s biggest speculative listings.
Key Points:
- SpaceX raised $75 billion and reach a valuation near $1.75 trillion.
- Analysts say retail investors may sell crypto to fund positions in SpaceX and other AI-linked IPOs.
- Bitcoin has fallen sharply as ETF outflows and rate concerns weaken the near-term recovery case.
SpaceX IPO
The offering that became the largest IPO on record, has drawn intense attention because Elon Musk’s rocket and satellite business is also tied to xAI, his artificial intelligence startup.
SpaceX is listed on Nasdaq at a valuation of about $1.75 trillion. The company has set aside as much as 30% of the offering, or $22.5 billion, for retail investors.
That retail allocation is unusual for a major IPO, where large institutions usually dominate early access. Analysts and crypto executives said the structure could force some traders to raise cash by selling risk assets, including digital currencies.
Bitcoin (BTC) was recently trading at $61,852, down about 52% from its October record of $126,223. “Crypto is a funding currency for a lot of this,” said Spencer Hallarn, global head of over-the-counter trading at GSR.
Also Read: Anthropic Seeks Google's Backing For Data Center Leases Before Wall Street Debut
Crypto Pressure
The timing is difficult for crypto because Bitcoin fell 15% last week, its steepest weekly decline since the FTX collapse in November 2022. The sell-off came as investors were already preparing for SpaceX, OpenAI and Anthropic listings.
Michael Saylor’s Strategy, the largest corporate holder of Bitcoin, added to concerns after disclosing its first sale of Bitcoin holdings since 2022. “It really is out of favor with investors,” said David Morrison, senior market analyst at Trade Nation.
ETF flows have also moved against the sector. Sui Chung, CEO of CF Benchmarks, said outflows from crypto exchange-traded funds topped $2 billion in May, though he cautioned that no one can prove the money is going directly into SpaceX.
Hallarn said a crypto recovery looks harder while hot IPOs compete for capital and investors expect the Federal Reserve may raise rates this year.
Higher rates can make safer, yield-generating assets more attractive than speculative markets.
The pressure follows a reversal from the rally that began after Donald Trump’s crypto-friendly administration took power. Crypto prices later fell after Trump threatened new tariffs on China in October, while U.S. semiconductor stocks surged 170%.
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