While SpaceX’s valuation has sparked debate due to its lack of profitability and premium revenue multiple, Wall Street remains focused on its long-term growth prospects, fueled by major customer agreements and ambitious revenue targets outlined by CEO Elon Musk. It’s also now trading at 100x 2025 revenues, with no profits to speak of. In 2025, the company generated less than $20 billion in revenues and is expected to stay unprofitable for a while, which makes its current valuation a bit hard to stomach.

The Buying Frenzy Continues

That’s especially true after Elon Musk said the company’s revenue could eventually grow to about $1 trillion by 2030. If that were to happen, the company’s current $2.52 trillion market cap doesn’t seem so far from reality. “I would be surprised if revenue is not greater than $1 trillion in 2031,” added Musk, as quoted by Reuters.

Fueling more upside, SPCX just signed an agreement with Google to provide cloud services for $920 million a month over the next 32 months. It also signed an agreement with Anthropic “to rennet compute capacity at its Colossus data center for $1.2 billion per month over three years,” as reported by MarketWatch.com.

So far, investors are doing okay with the new IPO. Those that chose to trade the IPO a bit safer with exchange-traded funds (ETFS) are also doing quite well. 

FPX Offers a Diversified Alternative

With an expense ratio of 0.61%, the First Trust US Equity Opportunities ETF (NYSEARCA: FPX) tracks hot IPOs, giving investors access to new stocks during their initial, most crucial days on market. By buying it, not only can you avoid paying gobs of money for IPOs that may or may not work out, but you’re also being exposed to multiple hot IPOs at the same time at lesser cost.

When we first mentioned the FPX ETF, it traded at around $185 on May 15. Today, it’s up to $199.27 and could rally even higher on the current strength of the SPCX IPO.

Looking Beyond a Single IPO

With an expense ratio of 0.6%, the Renaissance IPO ETF (NYSEARCA: IPO) provides “investors with the largest, most liquid US-listed newly public company stocks in one security, reducing the risk of single-stock ownership while avoiding overlap with major core indices for optimal diversification across markets and time,” as noted by Renaissance Capital.

Since May 15, it has rallied from about $49; it’s now up to $58.05 and gaining momentum.

Key Takeaways for Investors

While SpaceX has captured investors’ attention with its explosive post-IPO performance, the stock’s lofty valuation and lack of profitability may not be suitable for every investor. That’s where IPO-focused ETFs such as FPX and IPO can offer an appealing alternative. Rather than betting on a single high-profile company, investors can gain diversified exposure to some of the market’s newest and fastest-growing public companies.

If the enthusiasm surrounding SpaceX continues, both ETFs could benefit from the broader momentum in newly public stocks. At the same time, their diversified approach may help reduce some of the volatility that often comes with owning a single hot IPO. For investors who want exposure to the next generation of market leaders without taking on as much company-specific risk, these ETFs may be worth a closer look.

As noted by CNN, “OpenAI was last valued at $852 billion after raising $122 billion in March, but it’s faced pressure to demonstrate it can generate the cash to match that valuation.”

OpenAI’s IPO plans come just days before SpaceX is expected to launch its own public offering in a deal that could raise a record $86 billion and value Elon Musk’s aerospace and AI empire at roughly $1.78 trillion. Meanwhile, Anthropic, the developer of the Claude chatbot, disclosed last week that it had also confidentially filed for an IPO. In its most recent private funding round, Anthropic reached a valuation of $965 billion—surpassing OpenAI’s valuation for the first time—as the company continued to post rapid revenue growth.

While waiting for a direct opportunity to buy into this potential IPO is one approach, investors are turning to stocks and ETFs already benefiting from the current surge in IPO enthusiasm.

A Smart Way to Play the OpenAI IPO Trend

With an expense ratio of 0.61%, the First Trust US Equity Opportunities ETF (NYSEARCA: FPX) tracks hot IPOs, giving investors access to new stocks during their initial, most crucial days on the market. By buying it, not only can you avoid paying gobs of money for IPOs that may or may not work out, but you’re also being exposed to multiple hot IPOs at the same time at a lesser cost.

Even with its share of high-profile IPO disappointments, FPX has delivered strong long-term gains, climbing from around $11 in 2009 to recent highs near $190. The key advantage is simple: whether individual IPOs succeed or fail, the overall excitement and capital inflows into the IPO market tend to support the ETF over time.

Another option for IPO exposure: the Renaissance IPO ETF

With an expense ratio of 0.6%, the Renaissance IPO ETF (NYSEARCA: IPO) provides “investors with the largest, most liquid US-listed newly public company stocks in one security, reducing the risk of single-stock ownership while avoiding overlap with major core indices for optimal diversification across markets and time,” as noted by Renaissance Capital.

Since November 2023, the ETF has rallied from a low of about $30 to its current price of $55. From here, we’d eventually like to see the ETF rally back to $60 a share.

Another route: the Fundrise Innovation Fund

At the moment, AI accounts for about 44% of the Fundrise Innovation Fund (NYSE: VCX) portfolio and data infrastructure 23%, with the remainder invested in fintech, aerospace, gaming, software, and healthcare. The strong demand for VCX comes as its top holdings, such as Anthropic, Databricks, and OpenAI, are expected to go public this year.

A Safer Way to Trade OpenAI

As excitement builds around a potential OpenAI IPO, investors don’t necessarily have to wait for the company to begin trading publicly to gain exposure to the trend. 

IPO-focused ETFs and funds with stakes in leading private AI companies offer alternative ways to participate in the growing enthusiasm surrounding artificial intelligence and new market listings. While every investment carries risk, vehicles such as FPX, the Renaissance IPO ETF, and the Fundrise Innovation Fund provide diversified exposure to some of the companies and themes driving today’s AI revolution. 

These investments could be well-positioned to benefit both the short and long term.

“We think the company has been significantly overvalued and investors will have opportunities to buy the stock at more attractive levels after the IPO,” Morningstar analysts said, as quoted by CNBC. “Morningstar’s discounted cash flow valuation of SpaceX is $780 billion, which is roughly 48% below its private market valuation of $1.5 trillion.”

Of course, that won’t stop retail investors from flocking to the IPO on day one.

For those who want to avoid the Day One chaos, exchange-traded funds (ETFs) are another, “safer” way to trade the IPO. Here are three options to consider.

A Diversified Approach to the IPO Market 

When we first highlighted the First Trust US Equity Opportunities ETF (NYSEARCA: FPX) with the SpaceX opportunity, it traded at about $165. Today, it’s up to $194.48.

With an expense ratio of 0.61%, the FPX tracks hot IPOs, giving investors access to new stocks during their initial, most crucial days on the market. By buying it, not only can you avoid paying gobs of money for IPOs that may or may not work out, but you’re also being exposed to multiple hot IPOs at the same time at a lesser cost.

Even with its share of high-profile IPO disappointments, FPX has delivered strong long-term gains, climbing from around $11 in 2009 to recent highs near $195. The key advantage is simple: whether individual IPOs succeed or fail, the overall excitement and capital inflows into the IPO market tend to support the ETF over time.

With the FPX, it doesn’t matter if the stock is hot or a dud; the excitement surrounding IPOs continues to send the FPX to new highs.

A Focused Play on Recent Public Listings 

When we first highlighted the Renaissance IPO ETF (NYSEARCA: IPO) with the SpaceX opportunity, it traded at about $46. Today, it’s up to $57.57.

With an expense ratio of 0.6%, the ETF provides “investors with the largest, most liquid US-listed newly public company stocks in one security, reducing the risk of single-stock ownership while avoiding overlap with major core indices for optimal diversification across markets and time,” as noted by Renaissance Capital.

Since November 2023, the ETF has rallied from a low of about $30 to its current price of $57.57. From here, we’d eventually like to see the ETF rally back to $60 a share.

A Venture Capital Approach for Public Investors

There’s also the Fundrise Innovation Fund (NYSE: VCX), which, after bottoming out at around $75 in May, now trades at $192.59. The publicly traded venture capital fund offers everyday investors indirect exposure to SpaceX, which makes up a portion of its portfolio, alongside other private tech giants such as Anthropic and OpenAI.

A More Measured Path to SpaceX Participation

While SpaceX’s IPO could generate a good deal of excitement, investors should be mindful of the risks that often accompany high-profile public offerings. 

Rather than chasing shares on day one at potentially inflated valuations, investors may be better served by gaining exposure through diversified vehicles such as FPX, IPO, or the Fundrise Innovation Fund. Each offers a way to participate in the growth of innovative companies while reducing the single-stock risk that can come with even the most anticipated IPOs. As history has shown, patience and diversification often prove to be the more profitable strategy.

Investors should also remember that some of the strongest long-term returns come after the initial excitement fades and valuations become easier to assess. Whether SpaceX exceeds expectations or struggles to justify its lofty pricing, diversified investment vehicles can provide a more balanced way to participate in one of the market’s most closely watched growth stories.

IPO ETFs Could Benefit From SpaceX Excitement

One way to gain exposure is through the First Trust US Equity Opportunities ETF (NYSEARCA: FPX). With an expense ratio of 0.61%, the ETF tracks newly public companies during their early trading period—often when interest and volatility are at their peak. As of this writing, GE Vernova (NYSE: GEV) and SanDisk (NASDAQ: SNDK) are the fund’s top two holdings.

Instead of betting on a single IPO, FPX offers diversified exposure across multiple recent listings. Despite periodic disappointments in high-profile IPOs, the ETF has delivered strong long-term performance, climbing from roughly $11 in 2009 to recent highs near $189.

The key advantage is diversification. Rather than relying on any one IPO to succeed, investors benefit from overall enthusiasm and capital flows into the IPO market.

Renaissance IPO ETF Offers Broad IPO Exposure

Another option is the Renaissance IPO ETF (NYSEARCA: IPO). With a 0.6% expense ratio, the fund focuses on some of the largest and most liquid newly public U.S. companies. For example, as of this writing, CoreWeave (NASDAQ: CRWV) is the fund’s largest holding.

Its structure is designed to reduce single-stock risk while maintaining exposure to high-growth entrants. Since late 2023, the ETF has rallied from around $30 to about $49. Continued strength in the IPO market could push it higher, particularly if major offerings like SpaceX come to market with strong demand.

Private Market Funds Offer Pre-IPO Exposure

For investors looking beyond traditional ETFs, the Fundrise Innovation Fund (NYSE: VCX) offers exposure to private companies.

The fund has seen explosive recent gains, driven by demand for access to pre-IPO names. Its portfolio is heavily weighted toward artificial intelligence and data infrastructure, alongside investments in fintech, aerospace, and software.

Notably, it includes exposure to companies widely expected to go public in the future—giving investors a way to participate before IPO events occur.

Speculative SpaceX IPO Trades Carry Higher Risk

More speculative investors may look at Destiny Tech 100 (NYSE: DXYZ).

Shares have been fueled by excitement around its exposure to private “unicorn” companies, including SpaceX and other high-profile AI names. The stock has shown sharp momentum, jumping significantly in a short period.

Which SpaceX IPO Investments Carry the Most Upside?

If even a handful of these companies go public at strong valuations, the fund could see meaningful upside. However, volatility is likely to remain elevated given its concentrated and speculative nature.

Another reason investors are focusing on IPO-related funds is the improving backdrop for growth stocks. Falling interest rate expectations and stronger demand for artificial intelligence infrastructure have helped revive investor appetite for high-growth technology companies. If market conditions remain favorable, analysts expect more private firms to consider public offerings over the next 12 to 18 months, potentially creating additional momentum for IPO-focused funds.

Investors should also recognize that many SpaceX-related trades remain highly speculative. Because SpaceX is still privately held, funds with indirect exposure can experience sharp volatility based on headlines, valuation estimates, or shifts in investor sentiment. That makes diversification especially important for investors looking to participate in the IPO theme without taking excessive single-stock risk. While a SpaceX IPO could become one of the biggest market events in years, broader IPO market strength may ultimately create opportunities across multiple sectors beyond aerospace alone.

A SpaceX IPO is shaping up to be more than just a single market event—it’s acting as a catalyst for renewed interest across the IPO landscape. 

For investors, that creates multiple ways to participate. Diversified ETFs like FPX and IPO offer broad exposure, while funds like VCX and DXYZ provide more targeted—and higher-risk—opportunities. As anticipation builds, positioning ahead of the IPO wave may prove just as important as the IPO itself.

But one of the most effective ways to invest in an IPO might actually be by not investing in an IPO directly at all.

That may sound counterintuitive at first. After all, IPOs often generate enormous excitement in the financial markets. When a well-known company finally goes public, investors rush in, hoping to buy shares early and ride a massive wave of gains. Sometimes that strategy works incredibly well. Other times, it doesn’t.

The reality is that investing in IPOs can feel a lot like flipping a coin.

Some companies debut on the stock market and explode higher. A famous example is Amazon. When Amazon (NASDAQ: AMZN) went public in 1997, few people could have predicted that it would become one of the most valuable companies in the world. Early investors who held on saw extraordinary returns.

However, for every success story like Amazon, there are plenty of IPOs that fail to live up to expectations. Even strong brands sometimes struggle early in the public markets. Ferrari, for instance, initially disappointed investors following its IPO before eventually finding stronger momentum later on. Many other companies never recover from a weak public debut.

Because of this uncertainty, buying into an IPO can be risky—even when the company looks promising.

Why is There So Much Interest in an OpenAI IPO?

OpenAI has already raised significant capital from major investors. Recently, the company confirmed a valuation of about $110 billion. This has fueled even more speculation that an IPO could eventually happen.

According to Beincrypto.com, OpenAI has secured billions in private funding over the past several years. Its most significant partner remains Microsoft (NASDAQ: MSFT), which has committed multi-year investments reportedly totaling around $13 billion through structured equity agreements and cloud partnerships.

The newest funding round reportedly includes massive contributions from several technology giants:

• SoftBank is expected to invest around $30 billion.
• NVIDIA (NASDAQ: NVDA) could contribute another $30 billion
• Amazon may invest as much as $50 billion.
• Additional financial investors are also expected to participate as the funding round continues.

With backing from some of the biggest companies in the world, OpenAI could easily become one of the largest tech IPOs ever—if it chooses to go public.

But even with that excitement, investors may want to consider alternative ways to gain exposure to IPO opportunities without betting everything on a single stock. In this case, there are two exchange-traded funds (ETFs) they may want to consider.

First Trust US Equity Opportunities ETF (FPX)

With an expense ratio of 0.61%, the First Trust US Equity Opportunities ETF (NYSEARCA: FPX) focuses specifically on newly public companies. The fund tracks many of the most prominent IPOs shortly after they begin trading, giving investors access to emerging public companies during their earliest—and often most important—days in the market.

The benefit of this approach is diversification. Instead of placing a risky bet on one IPO that might soar or crash, investors gain exposure to a broad group of newly public companies. If some stocks perform poorly, others may offset those losses.

Historically, the FPX has delivered impressive long-term results despite the volatility of individual IPOs. Even with several high-profile IPO failures over the years, the ETF climbed from a low of about $11 in 2009 to a recent high of around $171.

That kind of performance demonstrates how diversification can smooth out the unpredictable nature of IPO investing. Whether a particular new stock becomes the next big success or turns into a disappointment, the overall excitement around IPO activity tends to support the ETF over time.

Renaissance IPO ETF (IPO)

The Renaissance IPO ETF (NYSEARCA: IPO) has an expense ratio of about 0.6% and focuses on the largest and most liquid U.S.-listed companies that have recently gone public. According to Renaissance Capital, the fund aims to provide investors with exposure to newly public stocks while reducing the risks associated with owning just one company.

By holding a basket of recent IPOs in a single security, investors can participate in the growth potential of new companies while maintaining diversification across different sectors and industries.

The Renaissance IPO ETF has also delivered strong performance recently. Since November 2023, the fund has climbed from a low of roughly $30 to about $43 today. If market momentum continues, investors may eventually see the ETF push back toward $60 per share—a level it last reached in 2022.

Own the Entire Opportunity

For investors interested in the excitement surrounding IPOs—especially potential blockbuster offerings like OpenAI—ETFs such as FPX and IPO may offer a more balanced approach. Instead of gambling on a single company, these funds allow investors to benefit from the broader wave of innovation and growth that new public companies bring to the market.

In the world of IPO investing, sometimes the smartest move isn’t picking the next big stock. It’s owning the entire opportunity.

However, the SpaceX news is also a reminder that one of the best ways to invest in an IPO is by not investing in an IPO at all.

That’s because investing in IPOs is a coin flip.

One of my favorite flops was the Ferrari IPO flop in 2015.

Here was a $12 billion IPO rolling on to the showroom floor, oversubscribed 10 times over.  Investors were excited.  Anticipation was high.  The press noted it could be a hot runner even though the company had just said net profits fell 34%. Unfortunately, the IPO was a flop. Shares would plummet from $60 to $33 in days.  Millions of dollars were wiped out.  

However, investors can also find examples of Amazon-type IPOs that just explode out of the gate and keep running.

So which one of these scenarios is more likely for SpaceX?

There’s the potential for Elon Musk’s SpaceX to raise more than $25 billion in 2026, and would reportedly include Starlink, SpaceX’s satellite-based broadband service, and continued progress in its ambitious Starship program aimed at lunar and Mars missions.

Unfortunately, it’s that coin flip that makes IPO investing terrifying for many investors. While you can always take your chances with a bet on an IPO, there are easier ways, particularly with fund investing. Here are two exchange-traded funds (ETFs) to consider.

First Trust US Equity Opportunities ETF

One, invest in the First Trust US Equity Opportunities ETF (NYSEARCA: FPX).

With an expense ratio of 0.61%, the FPX tracks hot IPOs, giving investors access to new stocks during their initial, most crucial days on the market. By buying it, not only can you avoid paying gobs of money for IPOs that may or may not work out, but you’re also being exposed to multiple hot IPOs at the same time at a lesser cost.

In fact, even with some of the most obnoxious IPO failures, the ETF managed to run from a 2009 low of around $11 to a recent high of $171.  It’s a safer alternative than risking your hard-earned money to another potential coin flip.

With the FPX, it doesn’t matter if the stock is hot or a dud; the excitement surrounding IPOs continues to send the FPX to new highs.

Renaissance IPO ETF

Another option is the Renaissance IPO ETF (NYSEARCA: IPO).

With an expense ratio of 0.6%, the ETF provides “investors with the largest, most liquid US-listed newly public company stocks in one security, reducing the risk of single-stock ownership while avoiding overlap with major core indices for optimal diversification across markets and time,” as noted by Renaissance Capital.

Since November 2023, the ETF rallied from a low of about $30 to its current price of $48. From here, we’d eventually like to see the ETF rally back to $60 a share, which it last tested in 2022.

Here’s Why the SpaceX IPO Matters

The SpaceX IPO matters not just because of Elon Musk’s star power, but because it highlights how emotionally charged IPO investing can become. When a company captures public imagination—whether it’s Ferrari, SpaceX, or the next tech disruptor—valuation discipline often takes a back seat. That’s when risk quietly rises.

For most investors, the lesson isn’t to chase or avoid IPOs entirely, but to rethink how they participate. IPO-focused ETFs offer exposure to innovation, momentum, and growth without tying your financial outcome to a single launch or failure. If SpaceX ultimately delivers a successful IPO, these funds can still benefit. If expectations fall back to Earth, diversification helps soften the blow. In the long run, managing risk often matters more than catching headlines.