Wall Street is developing investment products linked to shares of SpaceX, the private rocket company founded by Elon Musk, according to people familiar with the matter. The move would give investors a way to bet on the company's valuation without buying its stock directly.
What the products could look like
The products are expected to be structured as derivatives or notes that track SpaceX's valuation. They would likely be sold to institutional investors and wealthy individuals. SpaceX's shares are not publicly traded, so the products would need to reference private market transactions or a valuation determined by the issuer.
Why Wall Street is interested
SpaceX has become one of the most valuable private companies in the world, with its Starlink satellite internet business and Starship rocket program attracting investor attention. Wall Street firms see an opportunity to create products that meet demand from clients who want exposure to the company's growth.
Regulatory hurdles
The products would need to comply with securities laws. The U.S. Securities and Exchange Commission (SEC) has scrutinized products tied to private companies in the past. It is unclear how the SEC would view these SpaceX-linked investments.
The firms have not disclosed a timeline for when the products might be available. The development is still in early stages.
