SpaceX's Massive $75B IPO Threatens to Drain Crypto Markets of Capital

SpaceX's public listing Thursday is set to be one of the largest in history. Spencer Hallarn, who leads global OTC operations at GSR, said it is already pulling capital from Bitcoin and crypto markets.

Thomas Puech, who runs crypto platform INDIGO, told clients that AI is "the more attractive opportunity currently" and that this indicates some traders are rotating out of blockchain bets. Jeff Park, an adviser at Bitwise, argued that Bitcoin is being sold to fund what he called "momentum-driven capital flows," naming SpaceX and Anthropic. Vetle Lunde, research director at K33, echoed the view that excitement around large IPOs like SpaceX is weighing on Bitcoin.

Bitcoin traded near $61,800, down more than 50% from its all-time high. The token posted its worst weekly loss since late 2022. Liquidation volumes have climbed in recent weeks. Strategy, the largest corporate Bitcoin holder, sold 32 coins earlier this year, its first sale since 2022. That sale stirred unease.

Cryptocurrency exchange-traded funds saw outflows exceeding $2 billion in May, according to CF Benchmarks data. Sui Chung, CEO of the firm, said some of that capital is moving into equities but cautioned it is unclear how much specifically targets SpaceX.