Catch up with Musk’s rockets! SpaceX plans to go public in June; space-themed ETFs see highest quarterly inflows since 2019.

The news that SpaceX is about to land on the public market is triggering a wave of capital frenzy among space concept stocks.

According to Bloomberg quoting informed sources, SpaceX has secretly submitted an IPO application, with its target valuation raised to over $2 trillion, and it could be listed as early as June this year.

This news has ignited investor enthusiasm — space-themed fund Procure Space ETF absorbed nearly $175 million in the first quarter of this year, setting a new single-quarter record since the fund’s inception in 2019.

Procure Space ETF currently indirectly holds a small stake in SpaceX through satellite and internet service provider EchoStar Corp., owned by Charlie Ergen.

Meanwhile, the basket of U.S. space concept stocks tracked by Bank of America Merrill Lynch has risen 23% so far this year, far outpacing the S&P 500’s decline of 3.4% and the Nasdaq 100’s decline of 4.2%.

The SpaceX Effect: Trillion-dollar Valuations Attract Funds into the Space Sector

Expectations of SpaceX’s IPO are the core driving force behind this wave of capital into the space sector.

According to Bloomberg compiled data, Procure Space ETF recorded nearly $175 million in net inflows in the first quarter this year—the highest single-quarter level since its inception in 2019. The fund’s market value is around $415 million, so its inflow scale is not large, highlighting the concentration of funds during this period.

Andrew Chanin, CEO of ProcureAM, said, Procure Space ETF currently indirectly holds a small stake in SpaceX through satellite and internet service provider EchoStar Corp. owned by Charlie Ergen, which owns a small share in Musk’s company.

“Market frenzy is having a real effect around what may become the largest IPO in history,” said Philip Blancato, chief market strategist at Osaic Holdings. As the 15th largest institutional holder of Procure Space ETF, he revealed that his investment advisory firm is receiving a flood of client inquiries seeking access to SpaceX-related investment opportunities.

Matt Maley, chief market strategist at Miller Tabak + Co., directly attributed the current frenzy to SpaceX’s imminent listing and Musk’s stardom. “Famous billionaires are investing in the space sector, giving it unprecedented market attention for decades,” he said.

Space Concept Stocks Outperform Major Indexes This Year

In Bank of America’s tracked space concept stocks basket, the most prominent gainer is satellite earth mapping company Satellogic Inc., up nearly 280% so far this year.

The company is backed by Steven Mnuchin’s Liberty Strategic Capital and Cantor Fitzgerald LP, the latter managed by the children of US Commerce Secretary Howard Lutnick.

Other notable gainers include satellite communications firm Iridium Communications Inc. and Planet Labs PBC.

This strong performance contrasts sharply with the market — the S&P 500 has fallen 3.4% this year, the Nasdaq 100 is down 4.2%, while the space concept stock basket is up 23% overall.

Space Race 2.0: Lunar Development and National Strategy Provide Long-term Support

Besides expectation for SpaceX's IPO, the escalation of the global space race is also providing deeper fundamental support for the sector.

The four astronauts of NASA's Artemis II mission recently completed humanity's first lunar voyage in more than 50 years, setting a record for the furthest distance traveled in human history earlier this week. Meanwhile, both China and the US are investing billions of dollars to advance manned lunar programs, further stimulating the industry’s investment momentum.

“A true Space Race 2.0 is underway. The key question is who will first establish a permanent base on the Moon,” Chanin said.

Key contractors for Artemis II include Boeing Co., Lockheed Martin, Northrop Grumman, and L3Harris Technologies. These companies are also core defense contractors for the US military, and the high overlap between space and defense sectors further expands the sector’s investment logic.

Blancato noted that this generation of space investment is fundamentally different from past defense logic: “You are no longer building guns and bombs, but satellites and drones, which is a completely different mindset from before.”

Investment Focus Shifts: From Space Tourism to Satellites, Data Centers, and Lunar Infrastructure

Although the space sector is heating up overall, investors' attention has shifted significantly among sub-sectors.

Chanin pointed out that space tourism concepts, which drew attention several years ago—such as Jeff Bezos’s Blue Origin and Richard Branson’s Virgin Galactic Holdings—are gradually fading from market focus.

Investors are now turning towards satellites, communication technology, emerging fields such as space data centers, and lunar infrastructure.

This trend reflects a market repricing of commercialization paths in the space economy: from early hype around space tourism to a shift toward hard tech infrastructure with substantial business models and national strategic support.

Philip Blancato admitted that even five years ago, investing in space-themed funds like Procure Space ETF “felt crazy” to him — but now, with governments ramping up stimulus, he has completely changed his view.

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