The SpaceX IPO is Coming Soon. What Does It Mean for Crypto?
Key Points
The SpaceX IPO is attracting a lot of attention on Wall Street.
In the short term, it may lead cryptocurrency traders to focus their attentions elsewhere.
Long-term, the SpaceX IPO probably won't be a big issue for cryptocurrencies and might even be helpful.
- 10 stocks we like better than Bitcoin ›
The SpaceX IPO is coming! Everyone on Wall Street is excited, and for good reason, given the massive size of the deal, which is expected to raise $75 billion. There's an interesting twist here, however, because SpaceX is likely to appeal to more aggressive investors. The very same type of investor that buys cryptocurrency. Don't get too worried, even if there's some short-term disruption in the crypto space.
How low will crypto go?
Bitcoin (CRYPTO: BTC) is the grandaddy of all cryptocurrencies. It is down nearly 40% over the past year and off nearly 50% from its 2025 high, which was also its all-time high. This drawdown isn't actually unusual, as Bitcoin has lost more than 60% three times, with its worst decline exceeding 80%. That said, technically speaking, the absolute worst-case scenario is that all cryptocurrencies fall to zero. After all, the only thing supporting the price of a cryptocurrency is the willingness of people to buy and hold it.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
SpaceX is likely to be a temporary distraction
Right now, the typically more aggressive investors who would invest in crypto appear to be more interested in prediction markets. That's highlighted by Robinhood's (NASDAQ: HOOD) first-quarter earnings results. Transaction-based revenues from crypto trading fell 47% year over year, while prediction market revenue skyrocketed 320%.
There big takeaway from Robinhood's results: Even though there's a hot new investment fad (prediction markets), people are still trading crypto. The SpaceX IPO could draw some investors away from both crypto trading and prediction markets, but the IPO is a one-time event. After it is over, trading around SpaceX may remain elevated for a while, but it will eventually slow. And then people will come back to crypto trading and prediction markets.
SpaceX is a proponent of crypto
The truth is, Bitcoin is interesting because it operates outside the realm of government-backed money. That may give it, and perhaps a small number of other cryptocurrencies, functional value that provides a price floor. For example, SpaceX's IPO prospectus shows that it owns 18,712 Bitcoin, a hoard worth more than $1 billion. SpaceX could actually lead other companies to follow suit and build their own positions as a financial reserve.
It is hard to believe that crypto traders will completely abandon Bitcoin in favor of SpaceX stock if SpaceX owns the cryptocurrency. In fact, many crypto traders are likely to see SpaceX's ownership of Bitcoin as a long-term reason to buy it, even if their attention is temporarily drawn away by the excitement around the IPO.
Should you buy stock in Bitcoin right now?
Before you buy stock in Bitcoin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 7, 2026.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
Recommended Articles
