The initial public offering for SpaceX is reportedly oversubscribed by nearly four times its planned $75 billion raise, with over $250 billion in investor demand. This record-setting IPO coincides with a significant downturn in U.S. tech stocks and cryptocurrency markets, leading some analysts to speculate the offering is causing a temporary liquidity squeeze. Major crypto exchanges have launched pre-IPO perpetual futures contracts for SpaceX, with trading volumes reaching billions of dollars.
The initial public offering for Elon Musk‘s SpaceX is reportedly oversubscribed by nearly four times its planned size. According to Reuters, the IPO has attracted over $250 billion in demand against a $75 billion target.
Bankers and investors indicate strong demand from long-only funds with sizable orders. Pricing is expected soon, though large institutional orders can shift final demand figures.
The IPO arrives amid extreme market volatility. U.S. tech stocks have tumbled and crypto markets have shed over $180 billion in the past week.
Some analysts suggest selling to raise funds for the SpaceX IPO may be driving the retreat. “I’m seeing this exactly as the classic pre-mega-IPO liquidity squeeze playing out in real time,” Bitrue Research Institute research lead Andri Fauzan Adziima stated.
He characterized the market tanking as a direct ‘IPO tax’ from the deal. “Oversubscription with massive orders confirms the hype, but that excitement is sucking liquidity out of correlated risk assets today, hitting crypto hardest because it’s the most retail-driven and sentiment-tied to growth/tech narratives,” he said.
This was described as a temporary rotation, not the start of a broader bear market. SpaceX‘s growth is tied to its Starlink satellite internet business and a claimed $23 trillion AI market opportunity.
Crypto exchanges have capitalized on the IPO hype. Binance, Coinbase, Kraken, and Bybit launched pre-IPO perpetual futures for SpaceX this month.
Binance‘s head of spot and derivatives, Shunyet Jan, said the strong traction reflects growing user interest in gaining regulated-style market exposure. The products generated $2.1 billion in cumulative trading volume in 18 days on Binance.
Decentralized exchange Hyperliquid has also seen significant activity. According to Hyperdash, its synthetic SpaceX pre-IPO perps saw $70 million in volume in 24 hours.
The current price on Hyperliquid is $157, down from $210 at launch. Open interest exceeds $115 million, indicating strong demand and predicting a $1.97 trillion valuation.
