Australia’s Global X Launches New ASX Space ETF as SpaceX IPO Nears
Synopsis
Global X has announced the Global X Space Tech ETF (ASX: MOON), giving Australian investors new exposure to the growing space economy ahead of the SpaceX IPO. The fund will invest in companies involved in rocket launches, satellites, communications, data services, and space exploration. To qualify, businesses must generate at least 50% of their revenue from space-related activities. The announcement follows rising interest in space-themed investments on the ASX. Global X expects the global space industry to surpass US$1 trillion in annual revenue by 2034 as commercialisation accelerates.
Key Highlights
- Global X Space Tech ETF (ASX: MOON) has been reported to launch at ASX.
- The new fund will focus its investments on international companies in the space sector.
- At least 50% of revenue earned has to be space related.
- The news comes in the wake of mounting interest in an upcoming SpaceX IPO.
- The ETF does not have an official launch date yet.
Global X to launch a new space exchange-traded fund in Australia as interest in the sector swells ahead of an expected SpaceX IPO.
Global X Space Tech ETF (ASX: MOON) will invest in companies involved throughout the space economy including rocket launches, satellite infrastructure and communications services, data solutions and new space technologies.
Rather than being tied to a single company or stock, the ETF will give exposure to space value chains, a combination of startups and an alternative to fund the broader ecosystem rather than separate stocks.
This comes in the wake of growing investor interest in space-driven ventures. The BetaShares Space Industry ETF (ASX: RCKT) launched and became Australia's first ASX-listed space-themed exchange-traded fund (ETF). The fund started trading two weeks ago and has gained 30% since, before its current pullback.
A portion of each company's revenue has to come from space-related endeavors, around half or more of it actually, as per Global X's requirement for inclusion in the ETF, thus making sure that space is a core component of each businesses' activities and not merely a side project. Investors are really, really interested in space, said Christine Short, Nasdaq's executive director of ETF product marketing.
With technology advancing and costs continuing to decline, the space industry is inevitably shifting from exploratory to commercial. The firm argued that space might soon form one national economy layer like the internet has done for service businesses and social societies across the past decades.
As per Global X satellite activity is associated with more than half of today's space economy. The industry is shifting from single satellites to large networks. Also noting the opportunity of satellite broadband service, which it estimates could grow to US$100 billion by 2035, as bandwidth demand continues to surge.
Beyond the next decade, Global X envisages global space revenue possibly reaching US$1 trillion annually by 2034. Most of the rapid growth is projected for launch services, connectivity solutions and data services. The sector is still being primarily pulled by governmental spending. Global government space spending reached US$137 billion by 2025 while defence (military) related space spending at US$73 billion.
Global X has not provided an official launch date for the Global X Space Tech ETF (ASX: MOON) though it announced that soon after launch investors will be able to trade.
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