ERShares has rolled out a shareholder protection plan for its ERShares Private-Public Crossover ETF (NASDAQ:XOVR) ahead of the highly anticipated SpaceX IPO, seeking to protect long-term investors from trading activity that often surrounds major market debuts.

The asset manager said XOVR’s SpaceX exposure has already generated roughly $50 million in unrealized appreciation reflected in the fund’s net asset value (NAV). To preserve that value, ERShares plans to restrict certain large creation orders before the IPO and may impose redemption fees of up to 2% on creation-unit redemptions beginning on the day SpaceX starts trading.

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The firm said the measures are designed to reduce transaction costs, liquidity pressures and potential dilution that could arise from short-term inflows and outflows around the IPO event.

“SpaceX is ...