Key Highlights
- SpaceX’s $75B IPO is drawing investor attention toward AI-related stocks and away from crypto.
- Bitcoin has dropped sharply, falling about 52% from its all-time high, showing weak crypto sentiment.
- Crypto ETFs saw heavy outflows as investors rotated capital into IPOs and equity markets.
SpaceX’s planned $75 billion initial public offering (IPO) is drawing attention across financial markets, as some investors start moving money out of cryptocurrencies and into a rush of new artificial intelligence stock offerings. The shift is raising questions about where investor capital is flowing and what sectors may be left behind.
SpaceX is preparing what could become the biggest IPO in history, with expectations that the company may be valued at around $1.75 trillion when it lists on the Nasdaq in the United States. The offering is closely linked to Elon Musk’s broader tech empire, as SpaceX recently merged with his AI startup xAI.
During a recent interview with Phil Rosen, Chief Market Strategist of ProCap Financial, ETF analyst James Seyffart said, “If you look at what is going on in the market right now, anything AI, anything space, particularly anything that overlaps data centers and space, right, that has sucked in all the oxygen out of the room.” He added that crypto markets are also being affected by this trend.
What makes this IPO stand out is that about 30%, or roughly $22.5 billion worth of shares, may be offered to retail investors. This is unusual because big IPOs are normally controlled by large institutional investors, not everyday traders.
Money is moving out of crypto
The change is already affecting how investors move money. Many retail traders and even some large investors are pulling cash out of crypto assets to prepare for the IPO and other upcoming AI-related listings, including public offerings from OpenAI and Anthropic, which is expected later this year.
The main reason behind this is that investors see new opportunities that feel more exciting and may offer faster gains. Because of this, crypto is being used as a quick source of cash, not the main destination for investment right now.
For instance, Bitcoin, which is the largest cryptocurrency in the world, recently dropped below $60,000 before recovering to $61,836. Still, this is about 52% lower than its record high of $126,223 in October 2025. The drops came during a period when sentiment was already weak.
ETFs see heavy outflows and shifting demand
Crypto investment products have also been affected. According to data from SosoValue, crypto exchange-traded funds saw almost $2 billion in outflows in May alone, reversing early momentum seen when these products launched in 2024.
Those outflows suggest that money is not just rotating between crypto assets, but leaving the sector entirely and moving into equity markets.
Market participants say the competition is not random. Crypto and AI stocks are increasingly seen as competing for the same speculative investor base.
“A SpaceX IPO would likely pull some capital out of crypto, at least initially. Both compete for the same pool of risk capital,” said Thomas Puech, CEO of INDIGO. He also noted that AI investments currently feel more attractive to many retail traders compared to digital assets.
A wider market shift hitting crypto
The pressure on crypto is unfolding alongside broader weakness. According to a report, Bitcoin recorded its worst weekly drop since the 2022 FTX collapse, falling about 15% in a single week. At the same time, Strategy, the largest corporate bitcoin holder, disclosed its first sale of bitcoin holdings since 2022, which added to market unease.
Overall, what makes this moment important is not just SpaceX alone. It is what it represents. A single giant IPO, combined with a wave of AI listings, is strong enough to shift where global risk money goes.
Crypto is not collapsing because of one problem inside it. Instead, it is feeling the weight of a bigger fight for attention, cash, and excitement in the market. For now, that attention is clearly moving elsewhere, and crypto is left trying to hold its ground.
Meanwhile, at least eight crypto platforms, including Kraken, Coinbase, Binance, OKX, Bitget, Bybit, Trade.xyz, and Robinhood, are already offering exposure to SpaceX, just ahead of its IPO.
Also Read: SpaceX IPO Excludes Chinese Investors, Leaving Crypto as the Only Alternative
