SEC delays the simultaneous listing of leveraged ETFs and SpaceX IPO to prevent excessive volatility on the first day of trading.

Just as SpaceX landed on the Nasdaq with a record-breaking $75 billion size, ahead of its highly anticipated listing day (Friday), a group of asset management companies eager to launch leveraged exchange-traded funds (ETFs) simultaneously were "braked" by regulatory authorities. The exchange has notified these institutions that the issuance will be postponed until next Monday to ensure a smooth IPO process. Several sources revealed that multiple asset management companies seeking approval from the U.S. Securities and Exchange Commission (SEC) had originally planned to launch related ETFs on the same day as the world's largest IPO. However, the exchange informed them on Wednesday that they must wait until the next trading day after the end of the IPO's first trading day to go public. Three sources said that the exchange stated that the SEC is concerned that launching both ETFs and leveraged products simultaneously could complicate SpaceX's IPO process and potentially add unnecessary disruption risks to the already complex SpaceX listing process. According to documents and marketing materials submitted by relevant companies, some leading institutions in the leveraged products field, such as GraniteShares, ProShares, Direxion, and Defiance, plan to launch a 2x long leveraged ETF on SpaceX as soon as they are approved. Reports indicate that asset management companies hope to gain an advantage in the potential multi-billion dollar funding battle of the IPO's first week by launching leveraged ETFs on the same day as the stock IPO. "There is a lot at stake here; these products could ultimately hold assets totaling over $10 billion," said Matt Markiewicz, Head of ETF Product and Capital Markets at Tradr. The company had originally hoped to launch such ETFs on Friday. Their 2x long and 2x short ETFs will start trading on the global market of Cboe Global Markets Inc on Monday. The cautious attitude of the SEC is not without reason. SpaceX's IPO raised $75 billion, making it the largest capital market offering in history. Its performance on the first day of trading is not only crucial for itself but also seen as an indicator for future IPOs of AI and tech giants. Any "glitches" in trading, such as the trading delays and chaos caused by technical issues during Facebook's IPO in 2012, could potentially lead to market turmoil. Leveraged ETFs amplify daily returns through derivatives, making their trading mechanism more complex and price fluctuations more severe. If they enter the market simultaneously with new stocks on the first day of trading and abnormal volatility occurs, it could exacerbate market panic and even affect the pricing discovery process of SpaceX itself. Therefore, regulators have chosen to "let the stocks fly first," allowing leveraged products to enter after the first day of trading is stable. For asset management companies, delaying by two days is not a simple schedule adjustment. SpaceX's first week of the listing is expected to attract massive attention and inflows of retail and institutional investors. Those who can provide leveraged tools first have the opportunity to take the lead in this potentially "multi-billion dollar level" funding battle. Markiewicz admitted, "These products could attract over $10 billion in the first week of trading." GraniteShares, ProShares, and other companies are also waiting for the green light. They are ready to launch 2x long SpaceX ETFs to the market as soon as they are approved. It is worth noting that in addition to long products, Tradr also plans to launch a 2x short ETF to provide a reverse tool for investors with bearish or hedging needs. With the dust settling after SpaceX's debut on Friday (the grey market already indicating a rise of at least 35%), the official launch of leveraged ETFs on Monday will inject new variables into future trading. Volatility may increase, as 2x leveraged products will amplify the intraday fluctuations of SpaceX's stock price, potentially attracting high-risk appetite funds and causing sharp short-term fluctuations. The simultaneous launch of short ETFs means that even if SpaceX performs strongly after the listing, bears can express the opposite view through leveraged tools, making the bull and bear tug-of-war even more intense. Furthermore, the final attitude of the SEC towards this "delay" may set a precedent for the issuance rhythm of leveraged products accompanying future giant IPOs.