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Other firms, besides Virgin Galactic, like Maxar Technologies and Momentus, also have the chance of being included in the ETF.
American spaceflight company, Virgin Galactic Holdings Inc (NYSE: SPCE) has seen its stock rejuvenated on hopes that Catherine Wood’s Ark Invest, the operator of the world’s largest Exchange Traded Funds (ETF), is planning on launching a new Space Exploration ETF. The knowledge of Ark Invest and Wood, renowned for their productive ETF bets have sent not just SPCE stock upward in today’s pre-market, but have had a significant impact on the shares of the major players in the industry.
SPCE stock is up 1.38% to $30.85 after hours. The shares of a space technology company with a specialty in the manufacturing of communication, Earth observation, radar, and on-orbit servicing satellites, and satellite products to mention a few, Maxar Technologies Inc (NYSE: MAXR) closed Friday’s session with a 4.49% growth to $48.65 dollars. Other space stocks and affiliated entities are also set to see a surge in the coming days as the new ETF becomes a reality.
The anticipation in the market is not unexpected, Wood’s Ark Invest has had a successful run of ETFs that has returned significant profits to investors both on Wall Street and beyond. The firm’s flagship fund, the Ark Innovation ETF (NYSE: ARKK) outperformed in the past year to return as much as 170% in growth year-on-year, and based on precedent, the new ETF, which will come with the ticker symbol ARKX is set to see such bigger pumps.
While the year 2020 was one of the most remarkable for Electric Vehicle (EV) stocks which had a series of breakouts in terms of public listings, share growth, and overall revenue, this year 2021 has been tipped to be the year for Space exploration companies, and Ark Invest’s move is all but fueling the anticipation.
SPCE Stock to Be Flagship Addition to the ETF
As the new ETF launches, Ark Invest will be including a number of promising space stocks to the fund, and of the mainstream firms in the space exploration business, Virgin Galactic’s SPCE stock will probably be the flagship stock added to the new ETF.
Virgin Galactic has recorded key milestones in the course of the previous year, with several test flights and the appointment of new corporate heads. The company is set to complete a couple more tests, fly its Chairman, Sir Richard Branson to space before commercializing its space tourism operation. This is certainly set to stir a pump in SPCE stock and the ETF eventually.
Other firms in the space besides Virgin Galactic also have promising potentials and while Elon Musk’s SpaceX with its remarkable leaps last year will not be added to the ETF as it is still a private company, Maxar Technologies and Momentus (set to go public through a Special Purpose Acquisition Company) has a high chance of being included in the ETF.
As all eyes are on the new ETF from Ark Invest, many industry veterans are counting on the company’s expertise and sheer luck to be correct with its newly proposed Space Exploration ETF.