ETF issuer Defiance ETFs said on Wednesday that it plans to launch the Defiance Daily Target 2X Long SpaceX ETF (NYSE: SPCU) on June 15, days after SpaceX is expected to begin trading on Nasdaq under the ticker SPCX on or around June 12.
SPCU seeks 200% of SpaceX’s common stock’s daily price change, before fees and expenses, for a single trading day. The fund gains exposure through swap agreements and options contracts referencing SpaceX rather than holding shares directly, making it a synthetic product. Shareholders do not own SpaceX equity.
The fund resets daily and is not designed for holding periods beyond one trading day. Defiance said returns over longer periods reflect daily compounding and are “very likely to differ, sometimes substantially” from a simple 2X multiple of SpaceX’s longer-term performance. The company added that investors could lose their entire principal within a single trading day.
SpaceX priced its IPO at $135 per share, with the offering oversubscribed.
SPCU will join Defiance’s existing lineup of single-stock leveraged ETFs, which includes ORCX, a 2X daily fund referencing Oracle.
