Key facts
- Leveraged ETFs linked to SpaceX's IPO have been delayed from their planned Friday launch.
- The delay is due to SEC concerns about complicating the SpaceX market debut.
- The ETFs are now scheduled to launch on Monday, June 17.
- Firms like Tradr ETFs, ProShares, Direxion, GraniteShares, and Defiance plan to offer these products.
- The ETFs could collectively manage over $10 billion in assets.
Asset managers eager to launch leveraged exchange-traded funds tied to SpaceX's upcoming initial public offering have been instructed to delay their debut until Monday, June 17, according to four sources familiar with the matter. This setback prevents speculators and traders from capitalizing on potential first-day gains and delays the influx of capital into these products.
Exchanges informed the asset managers on Wednesday that the listings would need to be pushed to the first trading day following the IPO. Three sources indicated that the Securities and Exchange Commission (SEC) cited concerns that coupling leveraged products with the SpaceX debut could complicate the event. The SEC did not respond to requests for comment.
Firms like Tradr ETFs, which plans to launch 2x long and 2x short ETFs on Cboe Global Markets on Monday, had hoped to trade in lockstep with SpaceX's market debut. Matt Markiewicz, head of product and capital markets at Tradr ETFs, stated that the firm had wanted to launch on Friday. He added that these products could eventually hold more than $10 billion in assets.
Major players in the leveraged stock ETF arena, including Direxion, GraniteShares, ProShares, and Defiance, plan to roll out 2x leveraged long ETFs as soon as permitted. Simeon Hyman, global investment strategist at ProShares, noted that his firm was comfortable waiting until Monday, emphasizing that the intent is for the IPO to proceed smoothly. Analysts suggest that billions are at stake in the initial weeks of trading for these products.