SpaceX will join the Nasdaq-100 on July 7, making it one of the fastest additions in the index's history. Nasdaq announced after the close Friday that SpaceX qualifies for inclusion. Index-tracking funds and other product sponsors would begin purchasing shares after the market closes on July 6.
According to CNBC, SpaceX's rapid inclusion is among the first results of Nasdaq's newly adopted fast-track framework for newly public companies. The changes allow some large IPOs to become eligible for the Nasdaq-100 after just 15 trading days. Under the previous framework, investors tracking the index could be forced to wait months before gaining exposure to newly listed companies.
SpaceX made its public debut on June 12, meaning it will have traded for less than 30 days before joining one of the most closely watched indexes in the world. More than $800 billion tracks the Nasdaq-100, including the Invesco QQQ Trust, which is one of the most popular securities traded each day and is seen as a barometer for the artificial intelligence bull market.
SpaceX is expected to enter the index with a weighting of less than 1%. Even so, the combination of a large index and a small publicly tradable float means index funds and exchange-traded funds tied to the Nasdaq-100 would need to buy shares to match the benchmark's new composition. Active managers who track the index closely might also adjust positions. Because SpaceX's publicly tradable float remains small compared with its total market capitalization, even a modest index weighting could require meaningful purchases from passive investment vehicles.
SpaceX has been one of the most actively traded stocks since its June 12 debut. The index inclusion could create another source of demand on top of already active trading.
One door remains closed for now. Earlier this month, S&P Dow Jones Indices declined to create a similar fast-track process for the S&P 500. SpaceX remains ineligible for inclusion in the S&P 500 because of that index's separate profitability and seasoning requirements.