Retail Traders and the SpaceX IPO: Are Bitcoin Sales Involved?
Are retail traders selling their bitcoin to buy the SpaceX IPO?
Image: Coindesk
Amid speculation that retail traders are selling Bitcoin to invest in SpaceX's $75 billion IPO, data indicates no significant cashing out from crypto markets. While Bitcoin experienced a 16% drop, stablecoin flows remained stable, suggesting that the selling narrative may be overstated.
- 01SpaceX's IPO values the company at approximately $1.8 trillion, with 30% of shares allocated to retail investors via platforms like Robinhood and Fidelity.
- 02Despite speculation, on-chain data shows no abnormal cashing out of Bitcoin or stablecoins to fund the IPO.
- 03Bitcoin fell around 16% during the IPO announcement period, briefly trading below $60,000.
- 04Spot Bitcoin ETFs experienced record redemptions totaling about $4.4 billion before modest inflows resumed.
- 05Heavy withdrawals of Bitcoin and Ether were noted, with 66,470 Bitcoin and 2.49 million Ether moving off exchanges, indicating dip-buying rather than panic selling.
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Speculation has arisen that retail traders are selling Bitcoin to invest in SpaceX's upcoming $75 billion IPO, which values the company at about $1.8 trillion. The IPO is notable for allocating up to 30% of shares to retail investors through platforms like Robinhood, Fidelity, and Charles Schwab. However, data from stablecoin flows and on-chain activity suggest that there is no significant evidence of Bitcoin holders cashing out to fund this investment. While Bitcoin saw a drop of approximately 16% during this period, trading briefly below $60,000, stablecoin movements remained consistent, indicating that the narrative of mass selling may be exaggerated. The largest outflows were recorded in Bitcoin and Ether ETFs, which saw redemptions totaling $4.4 billion. Additionally, heavy withdrawals of Bitcoin and Ether from exchanges were observed, but these appear to be related to dip-buying rather than a rush to liquidate assets. The IPO is set to price on June 11 and list on the Nasdaq under the ticker SPCX the following day.
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Retail investors may face challenges in accessing shares of SpaceX due to high demand.
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