In 2026, the financial world is bracing for what could be one of the biggest IPOs to date: Space Exploration Technologies (SpaceX). With a potential valuation of approximately $1.75 trillion and a possible listing date as early as June 2026, pre-IPO demand is increasing. For public market investors, Baron First Principles ETF (RONB) has emerged as a vehicle to obtain exposure to this private investment before it goes public.
See more: Peel Back the AI Onion With Baron Capital’s Active Approach to Tech
While SpaceX founder Elon Musk may often be a figure in the news, his ability to build compelling business models is undeniable.
“While Elon is controversial in the news, he’s not controversial with us,” said Michael Baron, co-president and portfolio manager at Baron Capital, during an interview with Bloomberg. “We started investing in Tesla back in 2014. It took us over two years to actually build that position, and we started investing in SpaceX in 2017.”
Rare Pre-IPO Access
While SpaceX is one of the most valuable private companies, direct ownership is typically restricted to qualified investors and large venture capital firms. However, RONB changes this accessibility.
RONB provides exposure to SpaceX through publicly traded, transparent, liquid ETF shares. The company is a prime holding in RONB, which means it passed the rigorous research tests inherent in Baron Capital’s “First Principles” philosophy. A core tenet of that philosophy is breaking businesses down to their fundamentals and rebuilding them to understand their true growth drivers. In the case of SpaceX, this approach highlights the company’s evolution from a rocket startup to a vertically integrated tech titan, with multiple interconnected businesses now working together.
See more: BCTK: Moving Beyond the Index Trap in Tech Investing
A major driver of the anticipated IPO is the integration of Starlink and Musk’s AI venture, xAI. Starlink, a satellite-based internet service developed by SpaceX, has already surpassed 10 million subscribers, making it a strong revenue driver. Furthermore, by hosting orbital compute (space-based computing) capabilities on Starlink satellites, SpaceX is creating a data moat that competitors may not be able to replicate. Being able to protect competitive advantages and ensure durable growth trajectories is a key feature Baron Capital looks for in its investments.
“SpaceX has so much more potential than where it is today in terms of the launch business, driving costs down, their communications business with Starlink and satellites, and what they can do with the combination of xAI and providing AI training in space,” Baron added.
A Liquidity Advantage
By holding SpaceX shares in an active ETF, RONB offers investors benefits that they may not get in another fund. This includes a transparent and liquid way for individual investors to participate in SpaceX’s growth at its private valuation before the public market applies an IPO premium.
While other private-exposure funds often struggle with illiquidity, RONB’s SpaceX position is classified as “less liquid” rather than “illiquid.” As Morningstar noted, this is due to a robust secondary market and consistent repurchasing activity for SpaceX shares. This allows Baron Capital to maintain a high-conviction position in SpaceX while still providing the liquidity of an ETF wrapper. Ron Baron, CEO and Founder of Baron Capital, also maintains a close relationship with Musk, further reinforcing confidence in the liquidity of SpaceX. These types of bold, high-conviction decisions have helped drive Baron Capital’s strong long-term track record of performance.
With the quiet period of the SpaceX IPO beginning, the window for pre-IPO exposure is narrowing. For prospective investors looking to capture this exposure, RONB offers a disciplined, research-driven path to one of the most anticipated IPOs in market history.
To learn more about the active ETFs offered by Baron Capital, click here.
For more news, information, and analysis, visit the Market Insights Content Hub.
