Starlink IPO

[winfield100]

As far as I understand public ETFs cannot hold non-public assets because they need to be priced based on the basket of stocks they own and private stocks have no value so impossible to price.

I could be wrong. But I think this was the reason Cathie wanted to create an alternative investment vehicle (something like an ETF but not an ETF) to allow the average investor to get access to private companies.

Disclosure: I haven't yet read the fund's SEC filing.... Will do it later today.

https://sec.report/Document/0001104659-21-003837/

thank you for the link, though much is mind numbing legalese
however
--------snip-----------
The Fund will not invest more than ==> 30% <== of its total assets in securities issued by a single company, fund or of short-term financial products of such company.

The Fund will not invest in more than 20% of the total number of outstanding shares issued by a single company or fund.
----------snip-----------------

 

[JRP3]

I did a quick search of the word "private" but didn't find anything relevant. A search of "SpaceX" turned up no results.

 

[MXWing]

As far as I understand public ETFs cannot hold non-public assets because they need to be priced based on the basket of stocks they own and private stocks have no value so impossible to price.

I could be wrong. But I think this was the reason Cathie wanted to create an alternative investment vehicle (something like an ETF but not an ETF) to allow the average investor to get access to private companies.

Disclosure: I haven't yet read the fund's SEC filing.... Will do it later today.

https://sec.report/Document/0001104659-21-003837/

Baron mutual funds like BPTRX own SpaceX along with other publicly traded companies.

TSLA.. or NKLA.. not sure one of the two. I think the one that has actually delivered a car to a customer.

 

[JRP3]

BPTRX has a high minimum investment so not easily traded in and out of, providing some stability. I'd imagine an ETF holding private shares which are difficult to trade might run into some problems under certain circumstances.

 

[MP3Mike]

BPTRX has a high minimum investment so not easily traded in and out of, providing some stability.

I think you are thinking of BPTIX, the Institutional version with lower fees. The minimum initial investment in BPTRX is $100. (After that the minimum additional investment is $1.)

 

[Cosmacelf]

I took a quick look at the ARKX prospectus. Seemed to me like it assumes the fund will only invest in public companies. So, no SpaceX, which for me means I'm not interested.

 

[JRP3]

I think you are thinking of BPTIX, the Institutional version with lower fees.

Yes, thanks for the correction.

 

[TheTalkingMule]

I took a quick look at the ARKX prospectus. Seemed to me like it assumes the fund will only invest in public companies. So, no SpaceX, which for me means I'm not interested.

Personally I'm holding all Chamath Palihapitaya's SPAC funds hoping and praying that one of theme will merge with SpaceX and/or Starlink. It's a prayer I know, but seems the most likely of the unlikely and easily accessible scenarios.

 

[Nocturnal]

Personally I'm holding all Chamath Palihapitaya's SPAC funds hoping and praying that one of theme will merge with SpaceX and/or Starlink. It's a prayer I know, but seems the most likely of the unlikely and easily accessible scenarios.

Which are remaining? I'm holding IPOE now and did well with IPOB in the past.

I took a quick look at the ARKX prospectus. Seemed to me like it assumes the fund will only invest in public companies. So, no SpaceX, which for me means I'm not interested.

Unless that Starlink IPO is coming online...

Honestly this fund would seem like a strange move by ARK if they can't invest in the biggest space based company.

 

[TheTalkingMule]

Which are remaining? I'm holding IPOE now and did well with IPOB in the past.

I have:

IPOC - now Clover Health (CLOV)
IPOD - unassigned?
IPOE - now SoFI
IPOF - unassigned

IPOG not available yet.

 

[MXWing]

Which are remaining? I'm holding IPOE now and did well with IPOB in the past.


Unless that Starlink IPO is coming online...

Honestly this fund would seem like a strange move by ARK if they can't invest in the biggest space based company.

Agreed, but thinking out of the box, how could they do it?

Baron funds and SpaceX.

Is it just an ETF thing? If so, wonder why ARKX isn't just a mutual fund?

 

[Cosmacelf]

Agreed, but thinking out of the box, how could they do it?

Baron funds and SpaceX.

Is it just an ETF thing? If so, wonder why ARKX isn't just a mutual fund?

Yes, it is an ETF thing. ETFs must own liquid assets that have daily price discovery. As to why use an ETF as a vehicle, I believe they end up charging less fees (regulatory reasons? I have no idea), so they can be more investor friendly. When ARK started out, their funds were pretty small. So being an ETF, with low fees, was an attractive differentiator. It has worked well for ARK and ARK investors combined.

 

[JRP3]

ARK does offer mutual funds but mostly in Japan Mutual Funds - ARK Invest
Interesting that one of those Japan funds is Space Exploration.

 

[MXWing]

Yes, it is an ETF thing. ETFs must own liquid assets that have daily price discovery. As to why use an ETF as a vehicle, I believe they end up charging less fees (regulatory reasons? I have no idea), so they can be more investor friendly. When ARK started out, their funds were pretty small. So being an ETF, with low fees, was an attractive differentiator. It has worked well for ARK and ARK investors combined.

A Space ETF without SpaceX would be like an EV ETF without Tesla?

Being serious.

 

[Cosmacelf]

A Space ETF without SpaceX would be like an EV ETF without Tesla?

Being serious.

I agree. But as you can tell from watching SPCE, there is plenty of appetite for space investing, so ARKX might do well anyways.

 

[MXWing]

I agree. But as you can tell from watching SPCE, there is plenty of appetite for space investing, so ARKX might do well anyways.

Surely Elon would cut Cathie Wood in a funding round if she desires.

She can one up Baron's 3%-4% BPTRX holding percentage easily.

Well worth the inconveniences of a mutual fund product versus an ETF for that kind of exposure.

 

[Nocturnal]

Surely Elon would cut Cathie Wood in a funding round if she desires.

She can one up Baron's 3%-4% BPTRX holding percentage easily.

Well worth the inconveniences of a mutual fund product versus an ETF for that kind of exposure.

I have no idea if it’s possible but the demand is there. Even if you have the cash to go private equity it’s still hard to invest in SpaceX. I was able to get some recently but not as much as I wanted.

 

[ZeApelido]

Russia Might Issue Fines for Using SpaceX Starlink Internet Service - ExtremeTech

Might not get much business in Mother Russia

 

[bkp_duke]

Russia Might Issue Fines for Using SpaceX Starlink Internet Service - ExtremeTech

Might not get much business in Mother Russia

Starlink is an existential threat to authoritarian regimes. The free spread of ideas through an uncensored internet is a greater threat to them than anything they have ever faced.

Starlink will never be authorized in:
Russia
China
Venezuela
North Korea
Iran
Cuba
(add your favorite authoritarian regime here)

 

[JRP3]

I wonder how ARKX will compare to UFO PROCURE ETFs