A potential Blue Origin IPO could become one of the most closely watched public offerings in the history of the space industry. With Jeff Bezos’ aerospace company reportedly exploring a major funding round that could value Blue Origin at approximately $130 billion, investors are searching for ways to gain exposure to the company before shares ever reach the public market.
On the one hand, this could be a case of betting on the jockey rather than the horse. Bezos is perhaps more well-known for founding Amazon.com (NASDAQ; AMZN), and that’s worked out pretty well for investors. Still, buying Blue Origin stock directly may not be possible until an IPO is officially announced, but there are other ways investors can position themselves for a potential surge in interest around space, technology, and next-generation innovation companies.
While waiting for a direct opportunity to buy into Blue Origin is one approach, investors are turning to stocks and ETFs already benefiting from the potential IPO enthusiasm.
ETF Option #1: First Trust US Equity Opportunities ETF
One, invest in the First Trust US Equity Opportunities ETF (NYSEARCA: FPX)
With an expense ratio of 0.61%, the First Trust US Equity Opportunities ETF tracks hot IPOs, giving investors access to new stocks during their initial, most crucial days on the market. By buying it, not only can you avoid paying gobs of money for IPOs that may or may not work out, but you’re also being exposed to multiple hot IPOs at the same time at a lesser cost.
Even with its share of high-profile IPO disappointments, FPX has delivered strong long-term gains, climbing from around $11 in 2009 to recent highs near $192. The key advantage is simple: whether individual IPOs succeed or fail, the overall excitement and capital inflows into the IPO market tend to support the ETF over time.
With the FPX, it doesn’t matter if the stock is hot or a dud, the excitement surrounding IPOs continues to send the FPX to new highs.
ETF Option #2: Renaissance IPO ETF
Or, you can use the Renaissance IPO ETF (NYSEARCA: IPO)
With an expense ratio of 0.6%, the Renaissance IPO ETF provides “investors with the largest, most liquid US-listed newly public company stocks in one security, reducing the risk of single-stock ownership while avoiding overlap with major core indices for optimal diversification across markets and time,” as noted by Renaissance Capital.
Since November 2023, the ETF rallied from a low of about $30 to its current price of $56.60. From here, we’d eventually like to see the ETF rally back to $60 a share.
Alternative Investment: Fundrise Innovation Fund
There’s also the Fundrise Innovation Fund (NYSE: VCX).
We can also look at the Fundrise Innovation Fund. At the moment, AI accounts for about 44% of its portfolio and 23% of its data infrastructure, with the remainder invested in fintech, aerospace, gaming, software, and healthcare. The strong demand for VCX comes as its top holdings, such as Anthropic, Databricks, and OpenAI, are expected to go public this year.
Destiny Tech 100: Exposure to Private Space and AI Companies
Destiny Tech 100 (NYSE: DXYZ)
Shares of Destiny Tech 100 have also been interesting, with exposure to private AI and space unicorns like SpaceX and OpenAI. If even a handful of these substantial IPOs go public at strong valuations, DXYZ could benefit from significant upside.
Blue Origin IPO Could Accelerate the Next Space Investment Boom
The potential Blue Origin IPO represents more than just a possible opportunity to buy shares in one of the world’s most ambitious space companies—it could mark a major moment for the broader space economy, private technology markets, and the next wave of innovation-driven investing. While investors may have to wait before Blue Origin stock becomes publicly available, there are already ways to gain exposure to the themes surrounding the IPO.
Funds like the First Trust US Equity Opportunities ETF (FPX) and Renaissance IPO ETF (IPO) offer diversified exposure to the IPO market, while vehicles like the Fundrise Innovation Fund (VCX) and Destiny Tech 100 (DXYZ) provide access to companies operating in high-growth areas such as artificial intelligence, aerospace, and advanced technology.
