With Direxion’s launch of the Direxion Daily SpaceX Bull 2X ETF (LOFF), the firm believes the “Elon factor” has legs.
The SpaceX IPO frenzy saw ETF issuers preparing for the launch long before the day that they may have been waiting for. Direxion has debuted the Direxion Daily SpaceX Bull 2X ETF (LOFF) one business day after the 12 June 2026 SpaceX IPO with a total expense ratio (TER) of 0.97 per cent.
The launch of LOFF extends a single-stock franchise already built around Tesla and other volatile names.
Given TSLL’s success, Direxion sees LOFF as an extension of something bigger than a single stock.
“SpaceX is the largest IPO ever and the market excitement is palpable. Beyond the incredible capital raise and valuation, the “Elon factor” is very real and meaningfully adds to the hype. TSLL, our 2X daily TSLA ETF, is the second largest single-stock ETF in the US and active traders view us as the place to trade Elon with leverage. LOFF will immediately fill this built-up demand,” says Mo Sparks, Chief Product Officer, Direxion.
“We see the most interesting use cases around pockets of volatility—earnings moves, macro headlines driving sectors, geopolitical turmoil,” Sparks continues. “As SpaceX works towards data centers in space, there should be no shortage of headlines driving volatility and opportunity.”
There may not be a better stock to further fuel Direxion’s model. SpaceX lives at the inherently volatile juncture of launch activity, defence spending, AI infrastructure, satellite communications, and the 24/7 Elon Musk news cycle.
But the launch of LOFF is bigger than one man—and even, the hype aside, his company.
Sparks cites growth across Direxion’s lineup of broad index and single-stock ETFs—and the larger universe of leveraged ETFs—as proof of ever-increasing demand among experienced traders who want sophisticated tools to double (and sometimes triple) down on their conviction.
LOFF could be the beginning of a new crop of leveraged products.
“The leveraged single-stock space continues to grow, and we see this trend continuing as the market should see several exciting IPOs this year. That said, it is hard to view SpaceX as the norm given its status as both the largest IPO ever and a new way to trade Elon Musk’s corporate empire. While it is difficult to imagine demand this high for other names, there are a few private companies that will receive similar, if not equal, fanfare,” adds Sparks.
If LOFF follows in the successful footsteps of TSLL—the first single-stock leveraged ETF to cross USD1 billion in assets—it may be a harbinger of things to come. Anthropic, OpenAI, Perplexity and other closely watched private companies are all expected to go public in the next few years. While they’re not attached to Musk, they share one very important characteristic: the potential for meaningful volatility.
For issuers specialising in leveraged products, volatility is opportunity, and Friday’s SpaceX IPO saw others join their ranks, with Europe’s Leveraged Shares launching the world’s first 3x leveraged SpaceX ETP, trading under the tickers ELON (USD) and MUSK (GBx) on the LSE.
We also have launches from ProShares with the ProShares Ultra SpaceX (NYSE Arca: SPCF), from T-Rex, with the T-REX 2X LONG SPACEX DAILY TARGET ETF (NYSE Arca: SPAX) and GraniteShares with the GraniteShares 2x long or 2x short SpaceX ETFs.
Friday saw SpaceX peak at USD176 on its first day on public markets but it closed at USD161, a 19 per cent gain from its IPO price.
