What to know:
- SpaceX IPO excitement spills into crypto markets, with SpaceX-linked futures generating over $525 million in daily trading volume.
- Investors have already priced SpaceX at nearly $1.77 trillion, while crypto-based futures trade above expected IPO opening levels.
- Binance recorded more than $287 million in 24-hour SpaceX futures volume, while Hyperliquid open interest surpassed $115 million.
The upcoming SpaceX IPO has attracted considerable interest among both conventional and crypto investors. Although SpaceX will start trading publicly on June 12, investors from the crypto market have been trading SpaceX-related futures for quite some time now. Daily trading volumes have exceeded $525 million, with the market valuing SpaceX at nearly $1.77 trillion.
As Bitcoin continues to struggle to gain traction below the $62,000 mark, reports suggest that the upcoming SpaceX IPO has captured the attention of many investors. This raised concerns among some financial experts about whether investor funds are moving out of cryptocurrencies and into an IPO expected in 2021.
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SpaceX IPO Valuation Already Reflected in Crypto Markets
There has been a huge demand for the SpaceX IPO in advance of its debut on the market. It is said that there have been over $250 billion worth of orders placed on a $75 billion stock offering, meaning the IPO is four times oversubscribed.
The stock price is forecast to open at roughly $135, which would place a valuation of nearly $1.77 trillion on SpaceX. But the SpaceX futures, traded on crypto exchanges, are selling for about $162, which means investors anticipate further buying when trading starts publicly.
If the shares open around the current expectations of the market, SpaceX would emerge to become the seventh-largest publicly-traded company in the United States, surpassing Tesla’s estimated market capitalization of $1.6 trillion.
Crypto Exchanges Record Heavy Interest Ahead of SpaceX IPO
The demand for SpaceX-related assets has risen significantly across various crypto exchanges.
For instance, Binance alone has recorded more than $287 million worth of volume on SpaceX futures in just 24 hours. Based on the latest reports from CoinGlass, daily trading volumes have hit over $525 million.
Hyperliquid has also emerged as a leading platform for discussions about SpaceX, where open interest levels have reached over $115 million ahead of the planned SpaceX IPO. At the same time, exchanges like Coinbase, Kraken, Binance, and Bybit have released their own SpaceX-related products in order to introduce customers to SpaceX prior to the actual share listing.
Could the SpaceX IPO Be Affecting Crypto Market Performance?
The emergence of SpaceX-related crypto products has coincided with a general drop in the prices of cryptocurrencies. Over the period during which such crypto products have been available since May 18, Bitcoin is estimated to have lost about 20% of its value, while Ethereum has depreciated by about 23%.
Crypto analyst Michael van de Poppe suggests that these two phenomena might be somehow interrelated. He points out that those people who usually hunt for investments in crypto assets are now looking at the SpaceX IPO and other related assets.
As per van de Poppe, there is more investor interest in SpaceX as opposed to cryptocurrencies right now, and that may be one reason why the performance of the latter is poor.
Going forward, any response by the markets regarding the SpaceX IPO is expected to be watched closely. In the case that there is a cooling down after the SpaceX IPO, then some funds could possibly find their way into the crypto sphere, including Bitcoin and other altcoins.
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