The following is a guest editorial courtesy of Carolane de Palmas, Markets Analyst at Retail FX and CFDs broker ActivTrades.

Anticipation around the looming SpaceX IPO has triggered a retail investor rush into the space economy, with the Tema Space Innovators ETF emerging as a primary beneficiary. Trading under the ticker NASA, the fund cleared $2.6 billion in assets last week, cementing a meteoric trajectory that has caught the attention of casual investors and Wall Street veterans alike.

Why Has the Space Economy Caught Fire?

Space investing has rapidly evolved from a niche thematic allocation into one of the most closely watched long-term growth opportunities in global markets. What was once dominated by government agencies is increasingly being shaped by private-sector innovation, transforming space from a scientific endeavour into a commercially viable ecosystem.

The industry’s expansion extends far beyond rockets and satellite launches. Advances in reusable launch technology, low-Earth orbit infrastructure, satellite communications, earth observation, defence applications, and global connectivity are creating an increasingly diversified value chain that touches multiple sectors of the economy.

This shift is reflected in the industry’s growth outlook. According to projections from the World Economic Forum and McKinsey & Company, the global space economy could expand from approximately $630 billion in 2023 to nearly $1.8 trillion by 2035. Such growth would make space one of the fastest-growing segments of the global economy over the coming decade.

Importantly, much of this expansion is expected to originate from industries that are already deeply embedded in everyday economic activity. Telecommunications, defence, logistics, retail, and food supply chains are becoming increasingly reliant on satellite infrastructure and space-enabled technologies. As a result, investors are no longer viewing space solely as a speculative frontier but rather as a strategic enabler of future economic growth.

Against this backdrop, capital has begun flowing aggressively into investment vehicles capable of providing exposure to the sector’s most innovative companies. One of the clearest beneficiaries of this growing investor interest has been the Tema Space Innovators ETF, which trades under the ticker NASA.

Why Has NASA ETF Emerged as One of the Market’s Fastest-Growing Launches?

Launched on March 30, the actively managed fund achieved a milestone rarely seen in the ETF industry, surpassing $1 billion in assets under management within just 37 trading sessions. Investor demand continued to accelerate, pushing assets beyond $2.6 billion only weeks later and making the fund one of the most successful ETF launches of the year according to CNBC.

The strategy seeks to provide targeted exposure to companies operating across the space economy, including launch services, satellite technology, communications infrastructure, aerospace systems, propulsion technologies, and other adjacent industries benefiting from the commercialization of space.

Unlike traditional thematic ETFs that passively track an index, NASA employs an active management approach. This gives portfolio managers the flexibility to concentrate capital in their highest-conviction ideas while adapting holdings as the industry evolves. The portfolio typically consists of approximately 20 to 40 companies, allowing investors to gain focused exposure to what managers consider the most attractive opportunities across the space ecosystem.

The fund’s investment mandate is deliberately broad. While it primarily targets companies directly involved in space-related activities, it can also invest in businesses where space technologies represent a significant strategic growth driver. This expands the opportunity set beyond pure-play space companies and includes selected aerospace and defence firms with meaningful exposure to satellite, launch, or space infrastructure activities.

The ETF’s ticker has also contributed to its visibility. By adopting the highly recognizable NASA symbol, the fund has successfully connected with a growing retail investor base attracted by both the long-term growth narrative and the cultural appeal associated with space exploration.

However, while the broader space theme provides the foundation for the ETF’s success, a single company has become the primary catalyst behind its extraordinary asset growth: SpaceX.

The SpaceX Catalyst and the Search for Pre-IPO Exposure

As anticipation surrounding the SpaceX public listing continues to build, investors have been actively searching for ways to gain exposure to the company before any eventual IPO. The NASA ETF has emerged as one of the few publicly available vehicles capable of offering such access.

SpaceX represents approximately 10% of the portfolio, making it the fund’s largest individual position. The holding is maintained through a Special Purpose Vehicle (SPV), allowing the ETF to hold privately traded shares of the company. This structure provides investors with indirect participation in one of the world’s most valuable private businesses without requiring access to private markets.

For many investors, this feature represents the fund’s most compelling differentiator. Historically, access to high-profile private companies has been largely restricted to institutional investors, venture capital funds, and accredited investors. NASA effectively lowers that barrier by incorporating private-market exposure within a diversified public ETF structure.

“A space-focused ETF without SpaceX would be analogous to a semiconductor ETF without Nvidia — meaningfully incomplete.“

So excluding SpaceX from a dedicated space strategy would leave a significant gap in exposure to the industry’s most influential company. From reusable rockets and launch services to satellite broadband through Starlink, SpaceX occupies a central position within virtually every major segment of the modern space economy.

The fund also addresses a common dilemma facing investors interested in future IPOs. 

Waiting for a public listing may mean missing months of private-market value creation, while purchasing shares immediately after an IPO exposes investors to the volatility and concentration risk often associated with highly anticipated market debuts. By embedding SpaceX within a diversified portfolio of space-related companies, NASA offers an alternative approach that balances thematic exposure with risk diversification.

Investors should nevertheless understand the valuation mechanics associated with private holdings. Unlike publicly listed securities that are marked to market daily, SpaceX’s position is valued based on transaction pricing within the SPV structure. Consequently, changes in the company’s underlying private-market valuation may not be immediately reflected in the ETF’s daily net asset value.

Whether NASA can sustain its exceptional growth trajectory will depend on several factors, including continued investor enthusiasm for the space economy and the evolution of the SpaceX IPO narrative. For now, however, the fund has established itself as the flagship vehicle for investors seeking exposure to one of the market’s most ambitious long-term growth themes. 

As space increasingly transitions from a government-led initiative to a commercially driven industry, NASA’s rapid ascent suggests that many investors view the next frontier not simply as a technological revolution, but as a significant investment opportunity. What do you think?

Sources: CNBC, BNN Bloomberg, Tema Space Innovators ETF, World Economic Forum

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