The highly anticipated initial public offering of Elon Musk’s SpaceX is creating ripple effects far beyond the aerospace sector, potentially reshaping capital flows across ETFs as investors raise cash to participate in what could become the largest IPO in history.

• iShares Bitcoin Trust stock is trading at depressed levels. Where is IBIT stock headed?

SpaceX is expected to debut with a valuation of roughly $1.75 trillion and has reportedly reserved as much as 30% of shares, or $22.5 billion worth of stock, for retail investors.

That unusually large retail allocation has fueled expectations that investors may sell other speculative assets, including cryptocurrencies and related ETFs, to fund purchases of the stock.

Analysts and market participants told Reuters that cryptocurrencies have already felt the pressure.

Bitcoin recently traded near $60,000, down sharply from its October peak, while crypto ETF outflows have accelerated in recent months. The trend has raised questions about which ETF segments could lose assets and which could emerge as beneficiaries of the SpaceX frenzy.

Read Also:

Bitcoin's Slide Below $60,000 Delivers 80% Windfall For This ETF

Potential Losers: Crypto ETFs Face Another Headwind

Spot Bitcoin ETFs may be among the most vulnerable if retail investors continue rotating capital away from digital assets and toward high-profile AI and space-related opportunities.

The pressure could be ...