Bezos Branson space flight attracts retail investment, and the scale of the space industry will exceed $1.4 trillion

“Space tourism has attracted much attention”

Tencent Technology News, July 19th, investors in the space sector are like Amazon Jeff Bezos: they like to find inspiration in the science fiction novels of the 1970s and are convinced that humans will colonize space in the future . But the main difference between them and Bezos is that the net assets of these retail investors absolutely do not exceed US$200 billion, and there is no real spacecraft. These conditions will make the “world’s richest man” Bezos leap forward on July 20. Carmen line. Instead, retail investors have trading accounts with brokerage Robinhood, which allows them to experience the “last frontier” (meaning space) by buying stocks and other securities related to the space industry.

Now, space-themed Exchange Traded Funds (Exchange Traded Funds, referred to as ETFs), startups, and new trading technologies make it easier than ever for people to bet on the outer space economy. Bank of America estimates that the current value of the space industry is close to US$415 billion, and it may grow to US$1.4 trillion by 2030.

Great attention has been paid to Bezos’ upcoming space journey and the space flight of British billionaire Richard Branson earlier this month, but the scope and scale of the space field It goes far beyond this concern. In March this year, Ming Star Investment Manager Casey Wood (Cathie Wood) introduced the Ark space exploration ETF (referred ARKX), which is the company two years to support the launch of the first ETF. This investment tool tracks space exploration and innovation companies and has so far attracted more than $600 million in assets.

Kyle Walton of Wichita, Kansas, USA runs the Space Investment Company and holds about $2,000 in the Ark Space Exploration ETF

Earlier this summer, satellite launch services company Astra Space began listing on the Nasdaq after merging with Holicity, a special purpose acquisition company. Launch company Rocket Lab USA and space infrastructure company RedWire and other companies also announced plans to go public. All of this makes retail investors obsessed with the interstellar dream.

Alex Greenfield, a 48-year-old screenwriter and new space investor who lives in Snow Hills, Vermont, USA, said: “I may be too old to go to space. But I can help those in in “Star Wars” and “Star Trek” play an important role in the industry, but we have always liked the experience of popular culture. for me to say, this is exciting. “

Like many Americans, Greenfield first started using the trading platform Robinhood to actively invest when the new crown pneumonia epidemic hit last year. But he said that unlike many Americans, his first market action occurred when he was excited, when he was watching HBO’s science fiction series “Westworld” and wanted to know how to make robots. This eventually brought him to the realm of space.

In January of this year, Greenfield purchased the Procure Space ETF worth $500. This $120 million ETF includes companies that generate most of their revenue through space-related industries. During the market downturn, Greenfield invested an additional $150. After Wood’s ARKX was launched, he bought a $500 stake and increased his investment to about $1,000 this summer.

Greenfield knew that the possibility of direct investment in space projects (such as moon landings) was slim. But the screenwriter said that he hopes that new technologies that are not space-centric at first glance will promote the development of the industry. He is particularly interested in the use of 3D printing technology in space, which may significantly reduce the cost of transportation of goods required to build human bases on other planets. He said: “Some people will invest the right amount of money in companies looking for $1 trillion unicorns, and the children of these people will become carnegies.”

Greenfield examines his space investment

This long time span is consistent with the attitude of some financial consultants towards space, who say that this field has unlimited potential. Noah Damsky, founder of Marina Wealth Advisors in Los Angeles, said: “This is a huge growth opportunity that we can’t imagine. Just like Bitcoin a few years ago, it may be us. Something that can’t even be understood.”

Ryan Greiser, a financial planner at a consulting firm in Doylestown, Pennsylvania, also said that early entry into emerging industries can improve overall portfolio returns. He has sensed the opportunity, because many technologies seem to be colliding, accelerating the trend that may make space travel more profitable. This includes aerospace technology integration with artificial intelligence, robotics, 3D printing and sensor chips.

However, the risks of this process are also looming. The rocket launch will fail. On July 13, the U.S. Securities and Exchange Commission (SEC) sued the aerospace cargo company Momentus and the special purpose acquisition company Stable Road Acquisition. The regulator claims that Momentus lied about its technology, including falsely claiming that its propulsion system has been “successfully tested” in space. According to the SEC, Stable Road Acquisition repeated Momentus’ misleading statements in its public filings and did not conduct adequate due diligence.

The financial adviser also warned that space is an emerging industry with high volatility and failure. For example, the share price of British billionaire Richard Branson’s Virgin Galactic company has fallen every trading day since his successful space journey, wiping out all the gains since early June. In the past two months, space ETFs have also lost a lot of cash.

Investors are also divided on what constitutes real space investment. For example, some people are surprised to find that Wood’s ARKX fund includes shares of companies such as Netflix, Amazon, Alphabet, and even John Deere, a large agricultural tractor manufacturer. Kyle Walton, a 30-year-old industrial engineering student from Wichita, Kansas, said: “We made a lot of memes and jokes about John Deere.”

Walton said that he prefers the Procure Space ETF, which he thinks is more like a pure game in the space industry because it has stricter requirements and faces space. Walton owns approximately $3,700 in Procure Space ETF shares.

Todd Rosen CFRA ETF research director Bruce Adams (Todd RosenBluth) said: “Running with space and space exploration-related strategies more than one way Ark strategy from a broader perspective looks at those companies may benefit, including. Those less visible companies.”

Take John Deere as an example. The company’s tractors will not fly to the sky in the short term. But the company has partnered with NASA’s Jet Propulsion Laboratory to develop self-driving tractor technology. At the same time, the company and ZWZ are steadily investing in GPS and drones, which of course may be used in space.

Just like on Earth, compelling, consumer-oriented companies may receive more attention. But usually, the companies that have the potential to make big money are business-to-business (B2B) companies behind the scenes.

Tess Hatch, a partner at Bessemer Venture Partners who specializes in space investment, said: “Space tourism has attracted much attention. But there are other components in this field, including rockets, satellites, communications, and satellite manufacturing infrastructure. In short, it is what makes the daily life of the “Galactic Empire” possible in the future. 

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