SpaceX is among the most notable private companies in the market. The Elon Musk-led private company, focused on space exploration and private launch capabilities has absolutely rocketed in value, as the company continues to benefit from various government contracts involving the private firm. 

The company’s focus on providing affordable launches to key clients (namely, the U.S. government) has many who are bullish on both SpaceX and the future of Starlink considering how to potentially invest in this company.

However, as is the case with most private companies, getting one’s hands on shares can be a task that’s easier said than done.

Here’s what investors may want to know about SpaceX, where this company could be headed from here in terms of valuation, and how to potentially get one’s hands on shares of the privately-held company.

Key Points About This Article:

• SpaceX is among the most valuable private companies many investors are clamoring to get their hands on in this current Trump-driven bull market.
• Here’s what investors may want to know about SpaceX, and one option available to allow for ownership in this private enterprise.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

New Valuation

In the world of large private companies, valuations are typically set during funding rounds. In the case of SpaceX, its valuation has only continued to climb with each capital raise. Its most recent planned tender offer in December would value the company’s shares at $135 apiece, implying a market capitalization of more than $250 billion. That’s impressive for any company, but it’s a valuation many investors may expect to see with such an impressive Elon Musk-led company like. SpaceX.

The company’s ability to benefit from Musk’s close ties to now-president Trump (again) and a much more relaxed regulatory environment have sent the company’s valuation higher. Though, I wouldn’t be surprised to see future funding rounds come in at even higher valuations over time assuming these catalysts continue to materialize in revenue and earnings growth.

I continue to keep an eye on the SpaceX’s key milestones, and many investors may want to do the same in the hopes this company becomes a publicly-traded enterprise. But with only private tender offerings currently being made available to allow for liquidity for existing employees and the company, many investors may be forced to wait on the sidelines (assuming they don’t take advantage of key vehicles such as the one below).

An ETF Offering Exposure to SpaceX, Other High-Growth Private Companies

As I’ve pointed out in recent pieces, the Destiny Tech100 ETF (DXYZ) is one of a few exchange traded funds (ETFs) which provide investors with exposure to privately-held companies like SpaceX. This fund has a particularly high weighting to SpaceX, with around one-third of its portfolio focused on the Elon Musk-led company.

In addition to SpaceX, this ETF holds a number of other prominent currently-private companies such as OpenAI, Stripe, Klarna, Discord, and many others. The goal for this ETF’s fund managers is to get its holdings to amount to the top 100 privately-listed companies in the market, and the team has done a good job of acquiring shares in many of the top companies to date (given that shares are typically hard to get a hold of).

That said, given this ETF’s outsized exposure to SpaceX, it’s an investment vehicle that’s often viewed as a proxy bet on the space exploration company. I certainly think that’s a fair assessment, and it’s not one I’d trifle with. However, given the level of diversification here with the other 60%+ of the ETF’s portfolio, I do also think an argument can be made that investors are getting the kind of high-growth VC-like exposure they’d probably want from many VC funds with (relatively) reasonable fees.

This ETF does charge a rather high expense ratio of 2.5% and does currently trade at an extremely high premium relative to its net asset value, so investors should be very careful with holding this ETF. In my view, it’s more of a trading vehicle than anything else, but for momentum traders looking to play more upside ahead as enthusiasm builds around the ETF’s core holdings (like SpaceX), this is a top option to consider.

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