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Donald Trump's decisive victory in the 2024 presidential election has quickly reshaped market expectations across multiple sectors. The triumph particularly resonated with Elon Musk, whose early endorsement and platform support proved instrumental in Trump's campaign success.
As CEO of Tesla (TSLA) and X, Musk's influence reaches far beyond tech - but it's his space venture that's catching Wall Street's attention. While traditional aerospace stocks nudged higher post-election, a relatively obscure ETF called Destiny Tech100 (DXYZ) shot up 37% in a single day after the votes rolled in, and has now more than doubled in the past week.
The catalyst? DXYZ holds the largest accessible stake in SpaceX, Musk's private space exploration company, reportedly valued around $200 billion. Trump's pro-space stance and SpaceX's expanding ambitions - from Mars missions to Starlink's global deployment - has created a remarkable post-election scenario for this typically under-the-radar exchange-traded fund (ETF), which also offers exposure to an elite handful of other privately held market movers (OpenAI, anyone?).
So, while direct investment in Elon Musk's aerospace giant remains out of reach for most retail investors, through DXYZ, Main Street now has a ticket to what was once an exclusive billionaire's club. Here's a look under the hood.
DXYZ’s Recent Performance
DXYZ has demonstrated remarkable momentum after Trump's election win, and the shares have now more than tripled in value over the last month. This dramatic uptick coincided with heightened trading activity, as daily volume skyrocketed from an average of around 275,400 shares to a new record high of 20.2 million in Monday's session.
Behind this stellar performance lies a perfect storm of catalysts. Trump's electoral momentum has reignited enthusiasm in the space sector, reminiscent of his previous administration's pro-space policies. This political tailwind, coupled with SpaceX's operational excellence in completing its 100th launch of 2024, has amplified market interest in space-related securities.
What makes this surge particularly significant is the broader context of the U.S. space economy's robust growth, which has outpaced general economic expansion by contributing $131.8 billion to GDP. As DXYZ maintains its position as one of the few vehicles offering exposure to private space ventures - but most notably SpaceX, a top NASA contractor - its recent performance underscores the market's appetite for space technology investments.
Investment Structure and Portfolio Exposure
DXYZ stands out as a pioneering closed-end fund, currently managing a concentrated portfolio of 22 elite private technology companies, with SpaceX commanding the largest position at 37.6% of holdings. The fund's structure enables direct exposure to previously inaccessible private market leaders, including OpenAI at 3.5% and Axiom Space at 9.1% of the portfolio, and also features well-known names like Stripe, Discord, and Klarna.
The fund's approach is notably flexible, participating in both primary funding rounds and secondary market purchases to secure optimal entry points. This dual-track strategy has proven effective in building positions in companies like Revolut (4.7%) and Epic Games (4.5%), while maintaining a clear focus on established private enterprises valued above $750 million.
Management fees are set at 2.5% annually, positioning DXYZ competitively against traditional private market vehicles that often charge "2 and 20" or even "3 and 30" fee structures. The fund's transparent pricing and daily liquidity on the NYSE differentiate it from typical private investment options, which frequently require substantial minimum investments and lengthy lock-up periods.
The portfolio construction targets an eventual expansion to 100 companies, focusing on two key segments: established tech giants valued above $10 billion and emerging leaders in the $750 million to $10 billion range. This balanced approach aims to capture both stability and growth potential while maintaining strict investment criteria - companies must have raised over $50 million from reputable institutional backers and demonstrate solid financial health.
Trading with a market capitalization of $461 million, DXYZ has established itself as a unique gateway to pre-IPO/ private market opportunities. The fund's structure allows positions to be maintained even after portfolio companies go public, with proceeds either reinvested or distributed as dividends to shareholders.
Political Momentum Fuels Space Sector Growth
The space industry is hitting its stride, and the timing couldn't be better. SpaceX just nailed its 100th launch of 2024, and successfully used its mechanical “chopsticks” to catch a Starship booster - a major feat in the aerospace industry. Meanwhile OpenAI shook things up with massive cloud partnerships worth $12.5 billion in Q4. This isn't just coincidence; we're seeing a perfect storm of space tech and AI coming together at exactly the right moment.
Trump's return to the White House has lit a fire under these growth-fueled industries. His previous administration's pro-business stance and the potential loosening of FAA regulations for rocket launches have sparked renewed interest. SpaceX stands ready to capitalize, especially with Starlink's expanding satellite network and rural internet ambitions aligning perfectly with potential policy shifts.
What's particularly exciting is how these pieces fit together. The commercial space race has intensified, particularly in low Earth orbit, where reduced launch costs and technological advances are creating new opportunities. Musk's suggestion for a new government efficiency position could be the catalyst needed to merge AI capabilities with space operations more effectively.
Looking ahead, we're not just seeing growth - we're watching a transformation. The blend of policy support, technological breakthroughs, and strategic partnerships between tech giants and space companies is creating something entirely new. It's not just about sending rockets up anymore; it's about building an entirely new economic frontier.
Conclusion
The stars are aligning for space technology investments, quite literally. With DXYZ shares soaring to new heights on its unique exposure to SpaceX, this ETF offers a chance to invest in tomorrow's “unicorn” economy. Trump's expected policies, combined with SpaceX's record-breaking launch streak and the emerging fusion of AI with space technology, creates a solid opportunity for investors seeking to capitalize on growth opportunities beyond the stratosphere.
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