Episode summary
New ETFs to Watch: 2x SpaceX, -3x AI, Plus Bonds and Bitcoin | Trillions
Trillions
· · 21 min · Hosts: Eric Balchunas, Joel Weber · Guests: Isabelle Lee
Summary
The episode focuses on a wave of new ETF launches, led by a messy race to package SpaceX exposure. Eric Balchunas says about 25 SpaceX-linked ETFs have been filed and 11 leveraged products are launching around the same time, with the Defiance Daily Target 2X Long SpaceX ETF, SPCU, standing out because the competition is so crowded and so similar that performance may come down to marketing, ticker recognition, and trading volume rather than portfolio differences.
The hosts also highlight MicroSectors Negative 3X AI, AIDQ, as a way for traders to bet against an AI pullback, though they stress it is an ETN and therefore carries credit risk. Isabelle Lee joins to discuss the broader surge in ETF launches and the unusual economics of issuers racing into the same theme at once.
Beyond the headline-grabbing leverage products, the conversation turns to Corgi’s flood-the-zone launch strategy, Vanguard’s long-awaited entry into high-yield bonds with VCHY, and Purpose Bitcoin ETF, BTCK. The panel argues VCHY has arrived late but can still benefit from the Vanguard brand, while BTCK looks especially poorly timed because Bitcoin is weak, the fee is high at 1.3%, and ESG-flavored Bitcoin messaging no longer feels novel.
Key takeaways
- Balchunas says the SpaceX ETF derby is a pure liquidity-and-marketing contest, with only two or three of the 11 leveraged products likely to survive.
- SPCU is the Defiance 2X long SpaceX fund he picks as the one to watch, after seeing strong first-day volume.
- AIDQ offers a -3x bet against AI, but only in ETN format, so investors take on issuer credit risk as well as market risk.
- Vanguard’s VCHY enters high yield at 5 bps and already has $37 million, but the hosts think the category is mature and highly competitive.
- BTCK looks like a late, expensive Bitcoin launch at 1.3%, and Balchunas says it has only about $1.4 million so far.
Notable quotes
“there's, you know, there's only room for about two or three to be studs. And those will be millionaires because they charge so much”
“Vanguard finally I'm old enough to remember when HYG and JNK launched and everybody was like, "I wish Vanguard would jump into this space”
“it's in a bear market. Let's not be Let's be honest here. It's it's struggling. Bear market, hard to bad time to launch”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — Welcome to Trillions. I'm Joel Weber. — And I'm Eric Balchunas. — Eric, we do these new monthly shows. This time is a ETFs to watch episode. These are new ETFs to watch. And we have a handful of them. Also joining us to talk these through our friend in Bloomberg News, Isabelle Lee, who's a cross-asset reporter covering ETFs. Welcome back, Isabelle.
Excited to be back. I told you I'd be offended if you didn't invite me back, so here I am. — We will never tell that to anyone else whoever fills for you on this show. Um Eric, some stuff has been happening including the largest IPO ever in the form of SpaceX. There's something like 21 uh ETFs that have been filed.
25 and rising. Um probably more coming that are all trying to get in in on the action with leverage and all kinds of other things, shenanigans. What's the one the one ETF filing that and launch that has caught your attention?
Well, I would say the 2x and -2x SpaceX ETFs are all coming out the same day, which is rare. It reminded me of the Bitcoin I called it a derby when that happens. It's like a horse race.
They all, you know, and you know, we're going to see which one wins because with seven issuers and 11 products, there's, you know, there's only room for about two or three to be studs. And those will be millionaires because they charge so much. So like 1% fee.
So the one that wins, they can buy an island. Now, there'll be two or three that make money and eat. And then there'll be like three or four that like completely have to liquidate and like starve to death.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- leveraged etfs
- spacex etf launches
- ai hedging
- high-yield bonds
- bitcoin etfs
Companies and tickers mentioned
- SpaceX
- Vanguard
- Corgi
Watch the episode
Watch “New ETFs to Watch: 2x SpaceX, -3x AI, Plus Bonds and Bitcoin | Trillions” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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