Leveraged ETFs tied to SpaceX saw unprecedented trading activity, totaling $10 billion in volume during its debut week.
SpaceX’s market debut sparked a historic surge in leveraged ETF trading, with over $10 billion in volume during its first four trading days. The activity far exceeded expectations, driven by 11 new leveraged funds tracking the stock’s daily performance.
Leveraged Shares dominated, with its 2X Long SpaceX ETF (SPCH) logging three consecutive days of over $1 billion in volume. Tuesday marked the peak, with $4.2 billion in total leveraged ETF trades. These funds, designed to amplify daily returns, reset daily and can diverge significantly from the underlying stock’s performance.
The scale of demand mirrors past trends for high-profile stocks like Nvidia and Tesla, amplified by SpaceX’s record-setting IPO and Elon Musk’s association. Analysts noted the pattern, though the volume surpassed typical leveraged ETF launches.