Probably only a few percent. I am looking for the numbers, and from the FT, this IPO is only a ~4% stake that SpaceX is claiming should be worth 75 billion of his claimed valuation 1.75 trillion. And I can’t find the reference, but I think I have seen up to some 30-40% of the IPO shares would need to be bought by ETFs if it is included on the major indices. But since these large index funds are valued in the several trillions, it wont seriously tank the value. The real issue is that this is directly showing an issue several analysts have been raising at the FT for a while. Since so much of the investment market has gone into the ETFs and other forms of index funds, there is a huge amount of power given to these indices. And these funds are basically hostage to the whims of the people that manage the indices. The other thing is that that is enough of the shares that the value can get very inflated and allow people currently holding SpaceX equity to make out very very well above even its current inflated price.
Probably only a few percent. I am looking for the numbers, and from the FT, this IPO is only a ~4% stake that SpaceX is claiming should be worth 75 billion of his claimed valuation 1.75 trillion. And I can’t find the reference, but I think I have seen up to some 30-40% of the IPO shares would need to be bought by ETFs if it is included on the major indices. But since these large index funds are valued in the several trillions, it wont seriously tank the value. The real issue is that this is directly showing an issue several analysts have been raising at the FT for a while. Since so much of the investment market has gone into the ETFs and other forms of index funds, there is a huge amount of power given to these indices. And these funds are basically hostage to the whims of the people that manage the indices. The other thing is that that is enough of the shares that the value can get very inflated and allow people currently holding SpaceX equity to make out very very well above even its current inflated price.