Destiny Tech100 Inc. saw its shares rally sharply midday Thursday, jumping 18.1% to $57.40, as news of SpaceX's IPO filing reignited investor interest in the closed-end fund's significant exposure to the private rocket company. The rally pushed DXYZ to a high of $58.56 before pulling back slightly, while the broader market, as measured by the SPDR S&P 500 ETF and Invesco QQQ, edged lower.
SpaceX's S-1 filing, revealed Wednesday, sets the stage for a Nasdaq listing under the ticker SPCX. As of March 31, Destiny's portfolio had 14.5% economic exposure to SpaceX, making it one of the fund's largest holdings. This exposure has been a key driver of the recent volatility in DXYZ shares, which have been trading at a significant premium to their net asset value (NAV).
Destiny Tech100 is a closed-end fund designed to provide public-market investors with access to private tech startups. Unlike open-end funds, closed-end funds trade on exchanges and can price above or below NAV. According to a May 12 prospectus supplement, Destiny's March 31 NAV stood at $24.56 per share. At midday Thursday, shares were trading at approximately 2.3 times that NAV, reflecting the premium investors are willing to pay for exposure to SpaceX and other private companies in the fund's portfolio.
The fund's portfolio also includes significant stakes in other high-profile private companies. Anthropic accounts for 18.1% of the portfolio, while OpenAI represents 5.8%. Cash and cash equivalents make up 31.4% of assets. The fund has been actively raising capital through its at-the-market program, selling 8.49 million shares from January through March and generating approximately $244.1 million in net proceeds.
DXYZ has experienced a volatile week. After dropping 8.5% on Tuesday, it edged up 0.25% on Wednesday before rebounding sharply on Thursday. However, the stock remains below its recent high of approximately $71 reached on May 11. The fund's structure, combining private-company stakes, cash, and a closed-end fund format, means it is not a direct play on any single IPO, but rather a diversified vehicle for private market exposure.
Founder Sohail Prasad has pitched the fund as a simple way for investors to trade private names that are typically hard to access. However, the strategy has drawn skepticism from some analysts. ARK Invest's Cathie Wood previously expressed concerns about the high price point for daily liquidity, while Morningstar's Jack Shannon advised investors to stay on the sidelines, citing the massive premium that could lead to overpaying for the underlying assets.
Other retail investors have alternative options for private market exposure. Fundrise promotes VCX as a public venture fund listed on the NYSE, and ARK's ARK Venture Fund, a closed-end interval fund, targets private and public companies linked to disruptive innovation. However, these alternatives also face scrutiny. Neena Mishra, director of ETF research at Zacks Investment Research, recently described funds like Destiny Tech100 and Fundrise Innovation as very expensive and noted a lack of transparency.
The premium on DXYZ could shrink if the SpaceX IPO prices lower than expected, faces delays, or if Destiny increases share sales, boosting supply. For now, DXYZ is trading largely on private-market buzz, serving as one of the few public-market vehicles for that demand. Looking ahead, traders will be closely watching SpaceX's timeline for its potential listing, Destiny's next NAV update, and any commentary from the fund about its private holdings. Broader market moves appear less significant for DXYZ in the near term.
