SpaceX is going public tomorrow! A $75 billion mega IPO is draining the last bit of liquidity from the crypto space.
Tomorrow (June 12), SpaceX will hit Nasdaq with the ticker SPCX. As the largest IPO in history, it aims to raise $75 billion, with a valuation of about $1.77 trillion, and has been oversubscribed nearly 4 times, with total subscriptions exceeding $250 billion.
This massive IPO is sucking liquidity out of the crypto market.
30% of the IPO is allocated for retail investors, which is three times the typical allocation for large IPOs, and Fidelity has even dropped the minimum investment threshold for retail to $2,000. GSR executives noted that many investors are cashing out their crypto assets to raise funds for the IPO.
Data supports this trend: As of June 3, the US spot Bitcoin ETF has seen net outflows for 13 consecutive days, totaling $4.4 billion; the Ethereum spot ETF has experienced 17 days of capital outflows, coinciding perfectly with SpaceX's roadshow.
On-chain data has its blind spots; actions like users selling coins on platforms like Robinhood and Coinbase for IPO participation can't be tracked on-chain. On June 6, 66,470 BTC and 2.49 million ETH were moved off exchanges, with part of the funds being accumulated for buys at lower prices, while another part was liquidated to participate in the IPO.
This listing will also trigger a chain reaction. According to Nasdaq rules, companies in the top 40 by market cap can be quickly added to the Nasdaq 100 15 days after going public, and passive funds adjusting their allocations will further divert funds. Following this, AI companies like OpenAI and Anthropic will also be going public, and the flurry of IPOs will continue to siphon funds from the crypto space.
Tomorrow night, SpaceX will officially list, and short-term market liquidity will tighten further. However, this is just a phase of capital rotation, not the start of a bear market. Once the IPO frenzy subsides, funds are likely to flow back into crypto.
At this stage, it's advisable to watch and act cautiously; donโt blindly trade when liquidity is thin.
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