SpaceX IPO Hype Fuels Obscure ETF, Experts Warn of Dilution & Limited Gains

• Individual investors are pouring money into the ERShares Private-Public Crossover ETF (XOVR) to gain early access to SpaceX ahead of its potential 2026 IPO.
• XOVR has attracted over $470 million since December 8, more than half its total assets, driven by a Bloomberg report on SpaceX's targeted $1.5 trillion valuation IPO.
• Despite initial 12% exposure, SpaceX's holding in XOVR has shrunk to about 4% due to massive inflows, making it the fourth-largest holding after public companies.
• Experts like Morningstar's Jeffrey Ptak and ETF.com's Dave Nadig warn that the diluted SpaceX stake offers minimal impact on overall performance and investors may not see significant gains.
• Concerns exist about holding illiquid private assets in a daily liquidity ETF, with warnings that the "free money" perception might be misleading.

Why It Matters: Retail investors flock to XOVR for SpaceX IPO access, but experts caution about diluted gains and risks.