SPCQ rises sharply as SpaceX shares drop $10 under their $135 IPO price, triggering a 35% monthly decline.
The Defiance Daily Target 2X Short SpaceX ETF (SPCQ) climbed about 10% to $23 per share as SpaceX (SPCX) slid below its $135 IPO price, trading at $125. The leveraged inverse ETF, designed to deliver twice the daily inverse performance of SpaceX, has surged 91% since its mid-June launch but holds just $23M in assets.
SPCX had spiked to $225 post-IPO before reversing course, now down 35% in a month. The ETF’s daily-reset mechanism amplifies gains during steady declines but can erode returns in volatile markets. Its 1.31% expense ratio and single-stock concentration make it a short-term tactical tool.
SpaceX’s decline followed a scrubbed Starship V3 test flight, with Elon Musk citing engine issues. The delay spooked investors in a stock trading at over 80x traditional valuation metrics.