A widely followed 5x perpetual leverage on Hyperliquide tied to SpaceX’s impending IPO, expected to be the largest in history, has declined for three straight weeks.
The product, called SPCX, traded at nearly $157 on Wednesday, down about 27% from its launch price of around $216 in mid-May, after briefly touching $230.
This doesn’t mean traders are betting against SpaceX, as SPCX is still trading above the IPO price of $135. But the implied first day premium has been sharply reduced. In May, SpaceX’s contract price was about 60% above the bid, and it was closer to 16% on Wednesday.
The company priced the offering at $135 per share, with no price range allowing investors to move it up or down while the book was being built. In most IPOs, bankers collect orders and change the price based on demand. But SpaceX has chosen a fixed price path where investors either accept the price or not.
This leaves the SPCX as one of the few places where a SpaceX-related price actually moves before the stock opens.
The contract does not give holders of shares, allocation rights or claims on SpaceX. It is a cash-settled derivative that allows traders to bet on the value of the company’s stock. Unlike an indication of interest from an IPO, the criminal’s traders have money at risk and could lose it before the first stock changes hands.
The official book still looks huge. Reuters reported that SpaceX had attracted more than $250 billion in investor interest for a $75 billion raise, making the deal several times oversubscribed. Large investors often ask for more shares than they expect to receive, especially in bargains.
SPCX prices suggest traders are still expecting a premium to the $135 offer.
This may partly reflect broader market pressure. The crypto weakened in the IPO and bitcoin remains well below its January high. Some investors may also raise cash to fund SpaceX’s allocations, adding pressure to the same risk market where SPCX trades.
