Defiance Converts ETF for First 2X Daily SpaceX Exposure on IPO Day
UFO•Defiance’s SPCL fund was repurposed overnight into the first U.S. ETF offering 2x daily leveraged exposure to SpaceX on its June 12 IPO day. Retail investors could buy SPCL at Friday’s open before regular SpaceX Class A shares were available due to overwhelming order volume.
1. ETF Mandate Overhaul
On June 10, Defiance amended SPCL’s prospectus to reconstitute the fund around a single company after a “Material Space Event,” enabling SPCL to target SpaceX Class A shares at 2x daily leverage on IPO day.
2. Pre-IPO Trading Dynamics
SPCL began trading at Friday’s opening bell on June 12 as a SpaceX-specific fund, making it the only available vehicle for many retail investors who faced access issues when placing orders for SpaceX shares due to unprecedented volume.
3. Regulatory Workaround and Derivatives Use
Defiance utilized SPCL’s existing leveraged structure and total return swaps to gain exposure, bypassing the need to file a new ETF and securing first-mover advantage in the growing leveraged SpaceX ETF space.
