The Tema Space Innovators ETF (NASA) has reached a significant milestone, surpassing $1 billion in assets under management just 37 trading days after its launch. The fund closed Friday at $38.76, gaining 6.13% on the day and approximately 12.3% for the week, as investor enthusiasm for space-related equities intensified ahead of the Memorial Day holiday weekend.
SpaceX Catalysts Drive Momentum
The rally was largely fueled by two key developments from SpaceX: the public filing of its initial public offering paperwork and a successful Starship test flight on Friday evening. The upgraded rocket released mock satellites and splashed down in the Indian Ocean, marking what analysts described as "another meaningful step forward" despite minor engine and booster issues. Reuters reported that SpaceX could become the first U.S. IPO to target a $1.75 trillion valuation, potentially topping $1 trillion in market cap.
Fund Composition and Performance
As of May 22, NASA reported $1.42 billion in total assets, with its largest holdings including Rocket Lab at 10.71% of net asset value, SpaceX special purpose vehicles at 10.24%, Planet Labs at 6.05%, Intuitive Machines at 5.96%, and Firefly Aerospace at 5.50%. The actively managed ETF, which trades on the NYSE, saw 10.74 million shares change hands on Friday, outpacing rival space funds like the ARK Space & Defense Innovation ETF (up 2.8%) and Procure Space ETF (up 4.9%).
Market Context and Risks
According to ETF.com, NASA has now become the largest space ETF, surpassing both UFO and ARKX. However, investors should be aware of certain structural risks. The SpaceX SPV holding is priced at transaction cost and does not fluctuate during trading hours like public stocks. Additionally, NASA finished Friday with a 0.87% premium to its net asset value, which could shrink if buying pressure subsides. Reuters also noted that SpaceX is considering a staggered system for early-share resales post-listing, potentially avoiding a typical six-month lock-up cliff but spreading out the impact over time.
Industry and Analyst Perspectives
Georgetown University finance professor Reena Aggarwal commented that there is a "halo effect" around Elon Musk, making companies like SpaceX "difficult to value" without a peer group. Kathleen Curlee, a research analyst at Georgetown's Center for Security and Emerging Technology, described the Starship test as a positive step forward. Meanwhile, Rocket Lab secured a $90 million U.S. Space Force contract for geostationary satellite production, its first such project, providing additional support to the ETF.
Outlook and Calendar
With U.S. markets closed Monday for Memorial Day, the next trading session for NASA will be Tuesday. The key upcoming event is SpaceX's anticipated IPO, with reports suggesting a potential listing as soon as June 12, a roadshow starting June 4, and a share sale possible by June 11. The sustainability of demand for a public vehicle tied to private SpaceX will be closely watched after the holiday break.
