SpaceX Joins Nasdaq-100 as Leveraged Bear ETF SPCX Plunges Nearly 29%

SpaceX officially entered the Nasdaq-100 on Tuesday, marking one of the fastest additions to the technology-focused index after its recent public market debut. The move automatically brings the aerospace and technology giant into portfolios held by millions of investors through index-tracking funds, while triggering heavy buying from passive investment products that follow the benchmark.

The milestone also created sharp moves across related exchange-traded products. The leveraged bear ETF SPCX dropped roughly 29% as investors positioned for increased demand tied to SpaceX’s inclusion and improving market sentiment toward the stock.

Passive buying takes center stage

The Nasdaq-100 addition forces funds that replicate the index to purchase SpaceX shares, generating billions of dollars in expected passive inflows. Analysts have viewed the inclusion as a major event because it expands institutional ownership only weeks after the company’s initial public offering.

Several factors contributed to the unusually rapid index entry:

• SpaceX’s massive market capitalization following its IPO.
• Nasdaq’s updated rules allowing faster inclusion for qualifying large companies.
• Strong investor demand for exposure through index funds and ETFs.

Although passive buying often provides short-term support, market strategists caution that index inclusion alone does not guarantee sustained gains. Historical data shows newly added Nasdaq-100 companies frequently experience heightened volatility during their first weeks in the benchmark.

Investors focus on long-term fundamentals

While the index milestone represents another achievement for SpaceX, investors remain divided over its valuation. Some analysts believe mandatory buying from passive funds could continue supporting the shares in the near term. Others argue that future performance will depend more on revenue growth, profitability, and execution than on technical buying related to index membership.

The company remains ineligible for the S&P 500 under current index requirements, meaning another potential wave of passive demand is unlikely in the immediate future.

With its Nasdaq-100 debut complete, attention now shifts from index mechanics to SpaceX’s financial performance and whether it can justify the lofty expectations reflected in its market valuation.