SPCX Signals New ETF Surge, Continues Single Stock Leverage Trends

[00:00:00]Now, for joining us is Sylvia Jablonski, Chief Executive Officer CIO Defiance ETFs, and Paul Marino, Chief Revenue Officer Themes ETFs, who's joining me around the desk today. So, let's just start and kick things off with you, Paul. I mean, talking about the SpaceX launch, I mean, what has that told you about investor demand over the last a few weeks?

[00:00:19]>> Well, it's great that they're finally getting access to some of these private market companies that are leading the way in AI tech and space exploration. I think there's demand for that. So, what we've seen is a real real demand to get involved with some of these companies that are doing the most innovative work across the board. So, that's what we're seeing.

[00:00:38]>> Mhm. And Sylvia, would you agree? I mean, is that what you've certainly seen as far as that demand is concerned and what you've heard from the market?

[00:00:45]Because obviously, we've seen pretty much a full week of trade now.

[00:00:50]Um and it went up, but it seems to be coming back down to Earth, which I suppose is normal.

[00:00:57]>> Yeah, I mean, I think that this is probably one of the most exciting IPOs of of our time, right? The investors were just clamoring to get exposure to SpaceX, and you know, there's a there's a huge backstory here. A, it's Elon Musk. B, it's SpaceX. It's this idea of AI growth, hyperscalar growth, space launches, satellites, you know, a company that could have potentially 28.2 trillion-dollar TAM in years to come TAM in years to come. So, I think that the opportunity here is is is so great.

[00:01:28]And Paul said it really well, you know, a lot of investors are now interested in these new companies that are coming to market, these IPOs, and the disruptive sectors and themes. And so, the take-up has just been massive.

[00:01:40]>> And obviously, both of you have launched, or at least your companies leverage SpaceX ETFs here. So, I just do want to run through a couple of the products here. I mean, let's just start with you, Paul, with SPCH and SSPC.

[00:01:52]Just talk about some of the demand you've seen.

[00:01:55]>> Well, for us, it's been super successful. SPCH was the most traded ETF in the first week in ETF history. So, we did over 4 billion shares and that was on a shortened week, too.

[00:02:06]We didn't even get the fifth day. So, we've seen a ton of demand. Um both for the long and the short, which is SSPC.

[00:02:14]Um and we continue to see that demand on both sides. So, that's a good trading market when you have, you know, each side of the market.

[00:02:21]Um so, we're we're very excited. We're at a low expense ratio of 0.75. So, we're really resonating with retail investors that want to get leverage exposure to both the upside and the downside with leverage.

[00:02:32]>> And Defiance defines ETFs as two that provide leverage exposure to SpaceX, as well. Is that the kind of demand you're also seeing?

[00:02:40]>> Yeah, very similar story. We actually came out with the first ever leveraged SpaceX ETF on Friday on IPO day. That was ticker SPCL.

[00:02:48]Um and that's that's a, you know, 2x space ETF. It can hold one to five space stocks. And we also have SPCU, which is the the 2x SpaceX ETF by Defiance. Uh and SPCQ, which is a 2x short SpaceX ETF by Defiance. And uh you know, similar story to Paul's, there was just great volume and institutional retail pick up and take up of these names. And I think that's going to continue, particularly as you see volatility in this particular stock.

[00:03:13]That's kind of what the 2x single name ETFs are are primed for. So, you'll see a lot of volume coming from these in coming days.

[00:03:21]>> Paul, what does it tell you about single stock leveraged ETFs?

[00:03:25]>> Well, it means there's a great demand for them. Uh you know, the retail investor has always been a little bit behind uh the institutional investor when trying to gain leverage in an easy and efficient way. And and, you know, doing that at the right cost. And so, what this does is democratizes that uh for the retail investor and gives them an easy way to get in and out. The ETF wrapper is amazing. Uh and we've been able to do some exceptional things with it. And what we're seeing again, if you give them the right exposure, if you manage it correctly, uh and you and the the fees are right, you get very, very high demand.

[00:03:57]>> And and Sylvia, what do you think it's done as far as validation for the entire space? I mean, across the spectrum of innovation.

[00:04:07]>> It's certainly become a commercialized product in terms of the two times single name levered ETF. You know, for years you you had levered ETF products on different indices, broad-based indices, and you know, the last couple of years has really just been this this this birth of of single name levered funds. And what I will say is it it does it democratizes institutional types of products for retail investors, which is great. You know, they get access to leverage, they can amplify their their viewpoints without a margin account, things like this. But it's it's also I I think the market's changed and the institutional, you know, clients and and asset managers are now following the retail money, right? The retail is very heavily trading the market, they're interested in the market, engaged, talking about different stocks, particularly in AI, quantum computing space, you know, these disruptive themes. And so it's it's really interesting to see how institutions are following retail on here. And these products really allow both of them to trade.

[00:05:03]>> Yeah, there's a view that it's no longer called the dumb money, isn't it? But I'm just wondering then, Paul, to kind of wrap things up here. I mean, it really is the the summer of S1s right now. And I'm wondering as far as sort of single stock leveraged ETFs, if you believe you'll continue to see that kind of appetite for some of the other, you know, IPOs that we're going to be seeing throughout the rest of 2026.

[00:05:25]>> 100%. There's no doubt about it. We'll be there for Anthropic, we'll be there for um OpenAI. So, as these IPOs come to market for really important companies, we're going to be there as early as we can trade.

[00:05:39]And again, we we're leading the SpaceX single stock leveraged ETFs in all categories, market share, uh shares traded, and AUM. we're really, really happy with the success of the launch.

[00:05:50]>> Really appreciate both of you for joining me today here you at the stock exchange at Paul Marino, chief revenue officer of Themes ETF, and also Silvia Jablonski, who's the chief executive officer and CIO of Defiance ETF. So, really appreciate both of your time.