A widely followed 5x perpetual leverage on Hyperliquid tied to SpaceX’s impending initial public offering, expected to be the largest in history, has declined for three consecutive weeks.
The product, called SPCX, traded near $157 on Wednesday, down about 27% from its mid-May launch price of around $216, after briefly touching $230.
That 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 reduced considerably. In May, the contract valued SpaceX about 60% above the offer, and as of Wednesday it was closer to 16%.
The company set the offering price at $135 per share, with no price range for investors to move up or down during portfolio construction. In most IPOs, bankers collect orders and move the price based on demand. But SpaceX has taken a fixed price route where investors accept the price or not.
That leaves the SPCX perpetrator as one of the few places where a SpaceX-linked price actually moves before the stock opens.
The contract does not grant its holders shares, assignment rights or any claim on SpaceX. It is a cash-settled derivative that allows traders to bet on where the value of the company’s shares should trade. Unlike an indication of interest from an IPO, rogue traders have money at risk and can lose it before the first stock changes hands.
The official book still looks huge. Reuters reported that SpaceX has attracted more than $250 billion in investor interest for a $75 billion raise, making the deal several times oversubscribed. Large investors often order more shares than they expect to receive, especially in cases of large offers.
SPCX prices suggest that traders are still expecting a premium over the $135 offer.
This may partly reflect broader market pressure. Cryptocurrencies have weakened in the IPO and bitcoin remains well below its January high. Some investors may also be raising cash to fund SpaceX allocations, adding pressure to the same risk market in which SPCX trades.
