Could a SpaceX IPO Rattle Crypto? Bitcoin Outflows Seen as Investors Raise Cash

A potential initial public offering by Elon Musk’s SpaceX could have a meaningful impact on the cryptocurrency market.

The Block reported on June 10 that some market participants see money flowing out of digital assets such as Bitcoin and Ether as investors raise cash to participate in the SpaceX IPO. SpaceX is reportedly planning to allocate as much as 30% of the offering to retail investors.

Spencer Hallarn, head of OTC trading at GSR, said the IPO would need to raise $75 billion, and that money would have to come from somewhere. Crypto could be one of those funding sources.

The SpaceX IPO has also been cited as one reason for Bitcoin’s recent weakness. Jeff Park, an adviser at Bitwise, said investors are selling Bitcoin to put money into large IPOs such as SpaceX and Anthropic. Vetle Lunde, head of research at K33 Research, also said expectations for upcoming IPOs are weighing on Bitcoin prices.

At the same time, SpaceX is generating new trading demand within the crypto market. Perpetual futures tied to SpaceX are trading on Hyperliquid, Binance and OKX. Open interest in those products has reached $385 million, while cumulative trading volume has topped $2.7 billion.

Demand is also showing up in the tokenized stock market. Bitget said demand for its SpaceX IPO subscription product offered through xStocks was strong enough for the size to expand to $13 million from an initial $3 million. Kraken, Bybit and Robinhood are also offering SpaceX-related investment products.