Cathie Wood Thinks SpaceX Will Hit $2.5 TRILLION in 5 Years. You Can Buy This 1 ETF Now to Profit.
Cathie Wood’s Ark Invest projects that SpaceX will reach a $2.5 trillion valuation by 2030, indicating a 38% annualized return from its current $350 billion valuation. The forecast hinges on completing Starlink’s satellite constellation, which currently has 7,600 satellites in orbit with plans to expand to 42,000 by 2035.
ARK’s valuation model, developed with space research firm Mach33, estimates that Starlink could generate $300 billion in annual revenue and capture 15% of global communications spending. This revenue would rival Apple’s (AAPL) current $391 billion in sales, highlighting the massive scale of the opportunity.
The analysis suggests SpaceX will gradually shift focus toward Mars colonization once Starlink is complete. ARK believes that Elon Musk’s other ventures, including Tesla’s (TSLA) Optimus robots and The Boring Company’s machinery, will support the development of Mars infrastructure. While acknowledging the speculative nature of extraterrestrial commerce, ARK expects Mars-related business to impact SpaceX’s valuation by the late 2030s.
SpaceX’s growth depends heavily on government contracts, having received over $20 billion in federal funding over 15 years. This reliance explains Musk’s recent efforts to repair his relationship with President Donald Trump after their public dispute.
Investors can gain exposure through ARK’s Venture Fund (ARKVX), in which SpaceX accounts for over 13% of the holdings, alongside other Musk companies such as Neuralink and xAI. The fund has delivered nearly 20% returns over the past year.
For investors seeking exposure to companies like SpaceX before they go public, the ERShares Private-Public Crossover ETF (XOVR) offers another compelling solution.
This actively managed fund targets companies that meet the highest conviction threshold of the advisor’s proprietary Entrepreneur Factor model. It focuses on companies that drive innovation and have the potential to create substantial shareholder value.
XOVR’s investment strategy aligns with Wood’s investment philosophy as it identifies companies that rely on breakthrough technologies and disruptive business models. The fund can invest up to 15% of its net assets in privately offered securities that aren’t exchange-traded, providing access to pre-IPO companies with characteristics similar to those of SpaceX.
The ETFs focus on sectors including artificial intelligence, robotics, space exploration, next-generation transportation, and renewable energy, positioning it to capture the same innovative trends driving SpaceX’s valuation.
The fund’s portfolio composition reflects its commitment to entrepreneurial excellence. It invests in companies that are part of disruptive verticals such as artificial intelligence, genetic engineering, and space exploration. This diversified approach to innovation investing helps mitigate the risk of concentration by betting solely on one company. SpaceX is its largest holding with a nearly 9.5% weighting, followed by Nvidia (NVDA), Oracle (ORCL), and Meta Platforms (META).
XOVR’s management fee structure includes an expense ratio of 0.75%, making it a cost-effective option for investors seeking professional management of complex, innovative investments. The fund’s non-diversified status enables portfolio managers to make concentrated bets on their highest-conviction opportunities, much like Ark Invest approaches its own innovation-focused strategies.
While SpaceX’s path to a $2.5 trillion valuation involves execution risks, the broader trend toward space commercialization appears unstoppable. For investors who believe in Cathie Wood’s vision but want the ease of investing in an exchange-traded fund, XOVR provides access to the entrepreneurial ecosystem driving the next wave of technological advancement.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com