A historic stock market debut is imminent, with SpaceX's initial public offering expected to take place in June, potentially drawing interest and liquidity away from the crypto market. The company has filed a confidential S-1 with the SEC, aiming to raise $75 billion at a valuation of $1.75 trillion. This would not only be the largest stock market debut in history but also more than 2.5 times larger than Saudi Aramco's $29 billion record in 2019. SpaceX is not alone, as OpenAI and Anthropic are also planning to go public, with the combined capital raise expected to exceed $240 billion from June through year-end.
This massive influx of capital could lead to a rotation out of equities and a compression of liquidity in other assets, including crypto. The historical parallel with Coinbase's IPO in 2021, which marked the peak of the last bitcoin cycle, is a point of concern.
The upcoming IPOs may trigger index-driven flows, sector-rotation effects, and a reduction in liquidity, potentially affecting crypto prices. With a 30% retail allocation and a material bitcoin position, SpaceX's IPO is closely connected to crypto flows, making it a significant event to watch in the coming weeks.