Cryptocurrency exchange Coinbase has launched a new perpetual futures product that allows traders to speculate on the valuations of companies before they go public. The first pre-IPO company available for trading is Elon Musk’s aerospace firm, SpaceX, with the product settling in USDC and available to eligible users outside the United States. The launch coincides with reports estimating that a SpaceX IPO could make Musk the world’s first trillionaire.
Coinbase has rolled out a new perpetual futures product for pre-initial public offering companies, enabling traders to speculate on a company’s valuation before its market debut. The first company listed is Elon Musk‘s SpaceX, with more pre-IPO listings in sectors like technology and AI expected soon.
The SpaceX pre-IPO perpetual futures are settled using the USDC stablecoin and allow for 24/7 trading, with all positions automatically translating upon the company’s IPO completion. Brian Armstrong, co-founder and CEO of Coinbase, stated that “Pre-IPO perps are great to get exposure to private companies before they go public (outside the U.S. only for now) and to help with price discovery.” The product is not available to users in the United States.
This development was reported the same day Forbes estimated that a SpaceX IPO price of $135 per share would make Musk the first trillionaire. Reuters reported the IPO is targeted for June 12, while users on the prediction market Myriad place a 91% chance on him reaching the milestone before July.
Perpetual futures allow traders to take long or short positions on an asset’s price direction without direct exposure to the underlying asset. Unlike traditional futures, these contracts have no expiration date, making them a tool for hedging over extended periods.
The product merges perpetual futures with pre-market trading, a common feature in crypto for speculating on soon-to-debut tokens. However, pre-market prices are often noted for being inaccurate and highly volatile as new information surfaces.
