By Suzanne McGee<\/p>\n
PROVIDENCE, RHODE ISLAND, June 12 (Reuters) – Asset managers eager to roll out leveraged exchange-traded funds tied to SpaceX on its first trading day have been told to delay the launch until \u200cMonday, four sources familiar with the matter said.<\/p>\n
The setback denies speculators and traders a chance to capture \u200cwhat many expect could be a strong first-day pop in the shares of the blockbuster IPO, while managers will have to wait for the \u200binflux of capital into their products.<\/p>\n
“We had really wanted to be out on Friday,” said Matt Markiewicz, head of product and capital markets at Tradr ETFs, declining to comment on the delay. The firm’s 2x long and 2x short ETFs will now debut Monday on Cboe Global Markets.<\/p>\n
“There is a lot at stake; these products could end up holding a total of \u200cmore than $10 billion” in assets, Markiewicz added.<\/p>\n
Asset \u2060managers seeking SEC approval to launch the ETFs had hoped to trade in lockstep with SpaceX’s market debut, several of the issuers said.<\/p>\n
Instead, exchanges told them on Wednesday the listings would \u2060need to be pushed to the first trading day following the IPO, according to four sources. The exchanges cited SEC concerns that coupling the ETF launches with leveraged products could complicate the SpaceX debut, three sources said.<\/p>\n
The SEC did not respond to requests \u200bfor \u200bcomment. A spokesman for the Nasdaq Stock Market, which will be \u200bhome to the SpaceX IPO as well as \u200csome of the ETFs, declined comment. Cboe Global Markets and the New York Stock Exchange could not immediately be reached for comment.<\/p>\n
While there is no precedent for leveraged funds – introduced in the U.S. less than four years ago and surging in number over the past 12 months – to launch alongside an underlying stock, asset managers had hoped to gain an edge in what analysts say could be a multibillion-dollar race for assets in the first weeks of trading.<\/p>\n
“There are \u200cbillions at stake in the first few weeks alone,” said Todd \u200bSohn, an ETF analyst at Strategas.<\/p>\n
Major players in the leveraged stock arena, \u200bincluding Direxion, GraniteShares, ProShares and Defiance, plan to roll \u200bout 2x leveraged long ETFs as soon as they are permitted to do so, according to \u200ctheir filings and advertisements on investment forums and \u200bsocial media sites.<\/p>\n
“Investors will have \u200bmultiple options; they will be able to get SpaceX exposure because of early entry on the part of passive index providers, or through the stock itself, or through the leveraged (ETF) ecosystem, which adds up to a pretty \u200brobust mechanism for price discovery,” said Simeon \u200cHyman, global investment strategist at ProShares.<\/p>\n","protected":false},"excerpt":{"rendered":"By Suzanne McGee PROVIDENCE, RHODE ISLAND, June 12 (Reuters) – Asset managers eager to roll out leveraged exchange-traded…\n","protected":false},"author":2,"featured_media":531651,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[270],"tags":[12082,25087,18,19,17,228975,133,451,2731,78298],"class_list":["post-531650","post","type-post","status-publish","format-standard","has-post-thumbnail","category-space","tag-asset-managers","tag-cboe-global-markets","tag-eire","tag-ie","tag-ireland","tag-matt-markiewicz","tag-science","tag-space","tag-spacex","tag-trading-day"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116737427770851259","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/531650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=531650"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/531650\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/531651"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=531650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=531650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=531650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}