In six weeks, one of the largest initial public offerings in history is expected to take place, and the crypto market is likely to feel the effects. SpaceX has filed a confidential S-1 with the SEC, aiming to raise $75 billion at a valuation of $1.75 trillion.
This listing, combined with upcoming IPOs from OpenAI and Anthropic, is projected to pull in over $240 billion from June to the end of the year, surpassing the total venture-backed US IPOs since 2000. The massive capital raise may drain liquidity from the crypto market, as investors allocate funds to these high-profile listings. Crypto assets, including bitcoin, have traded in tandem with tech and AI equities, and a rotation out of these assets could impact the crypto market.
The historical precedent of Coinbase's IPO in 2021, which marked the peak of the last bitcoin cycle, serves as a cautionary tale. The upcoming SpaceX IPO, with its 30% retail allocation and material bitcoin position, will be a significant test for the crypto market. Whether crypto assets can withstand the liquidity pull or begin to decline as investors allocate funds to the SpaceX subscription will be a key signal in the coming weeks.