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Space IPOs Grabbing Attention: ETFs in Focus

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Investors should note that a handful of space and defense companies have made a return to public markets in 2025. After years of muted listings, the aerospace sector has been witnessing renewed interest, capital and momentum.

The public markets, while still cautious, are once again opening their doors for the companies that are building satellites, rocket systems, and lunar landers, as quoted on CNBC.

Notable Space IPOs in 2025

Several high-profile space companies have already made headlines with their public debuts (per the CNBC article):

Karman Holdings, backed by Trive Capital, went public in February, reaching a valuation close to $4 billion as its shares surged upon listing.

Voyager Technologies achieved a $3.8 billion valuation two months later, with shares skyrocketing 125% on their opening day to $69.75, well above the $31 offer price.

Firefly Aerospace, supported by Northrop Grumman, made its Nasdaq debut on Thursday under the ticker FLY, following the successful Moon landing of its Blue Ghost lander earlier this year.

A Shift From SPACs to Traditional IPOs

While traditional IPOs are regaining momentum, the space sector had previously depended heavily on SPAC mergers. SPACs are witnessing a slow comeback. Innovative Rocket Technologies, a reusable rocket manufacturer, recently announced plans to go public through a $400 million SPAC merger with the BPGC acquisition, linked to former U.S. Commerce Secretary Wilbur Ross, as quoted on CNBC.

Space Sector Positioned for IPO Success

Despite these headwinds, space-related companies seem well-positioned. Lukas Muehlbauer, IPOX research analyst, believes this is an opportune moment for space IPOs (quoted on CNBC), particularly with the United States investing in initiatives like the Golden Dome missile interception system, which leads to high company valuations.

ETFs in Focus

Against this backdrop, one needs to keep a close tab on space ETF Procure Space ETF (UFO - Free Report) . The underlying S-Network Space Index measures the performance of companies engaged in space-related industries. The fund charges 94 bps in fees.

Apart from this, investors can consider ARK Space Exploration & Innovation ETF (ARKX - Free Report) , Spear Alpha ETF (SPRX - Free Report) and SPDR S&P Kensho Final Frontiers ETF (ROKT - Free Report) .

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