Are Investors Selling Bitcoin to Buy SpaceX IPO Shares? Market Data Suggests Otherwise

The upcoming SpaceX initial public offering has sparked speculation that retail investors may be selling Bitcoin and other cryptocurrencies to secure shares in what could become the largest IPO in history.

SpaceX is seeking to raise about $75 billion at a valuation of roughly $1.8 trillion. Unlike many public offerings, up to 30% of the shares are expected to be available to retail investors through platforms such as Robinhood, Fidelity and Charles Schwab, significantly higher than the typical allocation.

At the same time, Bitcoin has fallen about 16% over the past week, briefly dropping below $60,000 before recovering above $61,000.

Crypto Market Data Shows No Major Retail Exit

Despite the speculation, blockchain data does not currently show clear evidence of investors leaving crypto markets to fund SpaceX purchases. Stablecoin activity, often used to track money moving from crypto into cash, has remained within normal ranges.

Analysts note that large redemptions of USDC and Tether were recorded before the recent market decline, not during it. Meanwhile, exchange data showed significant withdrawals of approximately 66,470 Bitcoin and 2.49 million Ether, a pattern more commonly associated with long-term holding and dip-buying rather than selling.

ETF Outflows Were the Main Source of Selling Pressure

The clearest outflows came from crypto investment funds. Spot Bitcoin ETFs experienced 13 consecutive trading sessions of withdrawals totaling around $4.4 billion before inflows resumed. Spot Ether ETFs also recorded an extended redemption streak.

While some investors may use crypto profits to participate in the SpaceX offering, current market data suggests there is no widespread movement of retail capital out of digital assets. More definitive figures may emerge when major trading platforms release their June activity reports next month.