Were you surprised by SpaceX’s run-up after the lockup expiration? You shouldn’t be. As shares are released into the public’s hands, SpaceX’s weighting in the NASDAQ 100 goes up, so index funds and ETFs that track it have to buy more shares, putting upward pressure on the price.
We’ll see whether that continues in the coming days. For now, plenty of SpaceX pre-IPO and post-IPO owners are celebrating.
Key points
- Lockup expirations increase SpaceX’s free float.
- A larger float raises its NASDAQ 100 weighting.
- Index funds and ETFs must buy more shares, supporting the price.
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