SpaceX IPO, Bezos' New Product Puts Space Economy In Focus—These Funds Are Riding The Rocket

The space economy's latest surge is no longer just about rockets, it's about capital markets, cloud-scale connectivity and a high-stakes rivalry between Elon Musk and Jeff Bezos. As SpaceX edges closer to a blockbuster IPO and Bezos-backed Blue Origin enters the satellite internet race, investor interest in space-focused ETFs is accelerating.

The S&P Kensho Space Index has climbed more than 70% over the past year and around 16% in January, sharply outperforming the S&P 500. The gains reflect growing conviction that space infrastructure is evolving into a core economic and geopolitical asset which is increasingly shaped by a small group of powerful corporate players.

ETFs To Watch

• ARK Space & Defense Innovation ETF (BATS:ARKX) : The most liquid option, with $767.1 million in assets and exposure to satellite, defense and next-gen aerospace themes.
• Procure Space ETF (NASDAQ:UFO) : A more focused bet on space infrastructure and launch services.
• SPDR S&P Kensho Final Frontiers ETF (NYSE:ROKT) : The lowest-cost option at 0.45%, appealing for long-term positioning.

Each of the three funds are up between 12% and 15% in January thus far.

SpaceX's IPO Plans Come Into Focus

That conviction sharpened after the Financial Times reported that SpaceX has lined up Bank of America Corp (NYSE:BAC), Goldman Sachs Group Inc (NYSE:GS), JPMorgan Chase & Co (NYSE:JPM) and Morgan Stanley (NYSE:MS) to lead what could become the largest IPO in history. The listing could raise more than $30 billion and value SpaceX at roughly $1.5 trillion, providing a benchmark that may reprice the broader space and aerospace universe. Even ahead of a debut, SpaceX's insider share sale late last year reportedly valued the company near $800 billion, per Bloomberg.

Jeff Bezos’ Blue Origin Enters The Satellite Internet Arms Race

Competitive pressure is intensifying as Amazon.com Inc (NASDAQ:AMZN) founder Bezos-backed Blue Origin unveiled TeraWave, a space-based internet service aimed at enterprise, data center and government users. The planned constellation—spanning more than 5,400 low- and medium-Earth orbit satellites—targets multi-terabit-per-second speeds beginning in 2027, putting it on a direct collision course with SpaceX's Starlink.

Governments Pour Capital Into Space Infrastructure

The escalation comes as governments ramp up spending on space capabilities. Reuters, citing Seraphim Space, reported that global space-tech investment surged 48% in 2025 to a record $12.4 billion, with the U.S. capturing nearly 60% of funding.

Defense-driven demand, satellite communications and launch capacity are emerging as strategic priorities, reinforced by President Donald Trump's executive order elevating space to a core national security objective.

ETFs Become the Market's Launchpad

For public-market investors, the Musk–Bezos showdown is playing out most visibly through space-focused ETFs, which offer indirect exposure to the companies, technologies and defense dynamics shaping the next phase of the space economy.

Photo: Alones from Shutterstock