A 3x Leveraged SpaceX Bet Arrives on London Markets Before the Actual Stock Begins Trading

How the Delayed Leverage Works

The staggered start is a direct result of geography and product structure. The London market opens hours before New York. On June 12, while the SPCX Nasdaq listing process is underway but before a closing price exists, the ETP can only hold cash. Oktai Cabrak, a managing director at Leverage Shares, explained that any capital flowing into the product on the initial listing day will be held in cash until a SPCX position can be established .

The real tracking begins on June 15. From that point onward, the ETP will aim to deliver 3 times the daily performance of the SPCX common stock, resetting its leverage factor every trading day . This design can cause returns over multi-day holding periods to deviate significantly from what a straightforward 3x multiplier would suggest—especially in a volatile stock like a newly public, multi-hundred-billion-dollar enterprise .

British Retail Frenzy and a $75 Billion Listing

The LSE listing is a direct response to booming demand from retail investors who feel historically locked out of SpaceX. Multiple UK stockbrokers have reported a surge in client inquiries eager to be part of the rocket company's debut . The BBC noted that UK retail investors are expected to receive around £1.5 billion worth of shares in the IPO, a market moment that one major UK investment platform hopes will inspire a new generation of traders .

The underlying asset, SpaceX, is breaking records of its own. The company priced its initial public offering at $135 per share, seeking to raise $75 billion in what is easily the largest IPO in financial history . At that level, SpaceX's market capitalization reaches roughly $1.75 to $1.77 trillion, ranking it as the seventh-largest US company and surpassing Tesla . The offering, which attracted more than $250 billion in investor demand—between 3.5 and 4 times the shares available—uses an unconventional single fixed price rather than a price range .

A $1 Trillion Valuation Gap

Not all professional analysis aligns with the IPO's ambitious pricing. Morningstar has launched coverage of SpaceX with a fair value estimate of just $780 billion, assigning the company a narrow economic moat rating . The firm's analyst Nicolas Owens applied a discounted cash flow analysis and concluded that the company is "significantly overvalued" at the IPO target and that investors could likely find more attractive entry points after the listing .

The primary driver of the gap is the company's AI-focused xAI division, which was acquired in a costly February 2026 merger. Morningstar sees a wide range of possible outcomes for this business and views it as a "material threat of value destruction" that limits the overall company's valuation .

Staggering Losses Behind the Hype

The company's recent income statements reinforce the skeptics' case. SpaceX recorded:

• A $4.9 billion net loss for the full year 2025 against $18.7 billion in revenue .
• A further $4.3 billion net loss in Q1 2026 alone, nearly matching the full-year prior loss in a single quarter .

These losses are partly driven by the xAI unit, which generated only $818 million in revenue during Q1 2026 but sustained an operating loss of nearly $2.5 billion over the same period . Short-seller Jim Chanos has publicly labeled the $1.77 trillion valuation as "pie in the sky," pointing to the company's long road to profitability .

What Investors Need to Know About the ETP Structure

The ELON/MUSK ETP is a daily-compounding leveraged instrument, a structure that comes with specific and often misunderstood risks. Leverage Shares' own documentation is explicit: daily-compounding products aim to multiply the performance of the underlying asset by a given factor for a single day .

Held for multiple days, the product's returns are path-dependent. If SPCX's stock undergoes a volatile period with large up and down swings, the ETP's value can erode even if the underlying stock eventually returns to its starting price. Leverage Shares itself warns that these products amplify both gains and losses, adjusted for fees, and are therefore "consequently amplifying any gains and losses" over the short term .

The investment case for this ETP is therefore narrow. It could serve as an instrument for traders executing short-term directional views on the day of SpaceX's first earnings report, a major Starship launch announcement, or other binary catalysts. For anyone considering a buy-and-hold position in the world's most-hyped IPO, however, even Morningstar's $780 billion base case suggests ordinary shares may have a long way to fall before finding their true valuation floor .

In the end, the launch of ELON and MUSK symbolizes a broader global mania around SpaceX's public debut. A triple-leveraged derivative traded in London before the underlying stock in New York has ever printed a live closing price—that is a market first, and it underscores the extraordinary speculative heat surrounding what is unquestionably the biggest listing in history .