Billions in SpaceX Trades Jolt ETFs Including Cathie Wood’s ARKK (opens original article in a new tab)

Major ETFs experienced significant inflows and outflows linked to SpaceX IPO exposure, with some managers implementing restrictions to protect shareholders from dilution.

• A series of multibillion-dollar flows in ETFs, including Cathie Wood's ARKK, were linked to SpaceX IPO exposure.
• ETF managers restricted creations and imposed fees to curb arbitrage strategies that could dilute existing shareholders.
• The practice involves using ETFs for IPO arbitrage, risking fund performance and disadvantaging long-term holders.