The space sector is officially stealing the hype from the overheated AI scene: following SpaceX's filing of its S-1 for an IPO under the ticker SPCX in May, the volume of specialized Space ETFs has shattered records, hitting $3.3 billion. The flagship fund, Tema Space Innovators (NASA), has accumulated $2.6 billion in just two months thanks to its unique stake in SpaceX through an SPV. The current rally in RKLB, ASTS, and space funds is a classic market pump driven by expectations of the 'IPO of the decade', with a target valuation for SpaceX at $2 trillion, leading issuers to flood the SEC with applications for leveraged and options ETFs.
Right now, the sector is moving purely on FOMO fuel, and the inevitable listing of SpaceX in June will trigger a sharp liquidity drain from other space funds based on the principle of 'buy the rumor, sell the news', so jumping into this scene at all-time highs for dubious diversification is short-term madness.
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