Seraphim Space has launched a new exchange-traded fund (ETF) designed to offer everyday investors access to companies at the forefront of the modern space economy. The fund, which will be listed in London, Frankfurt, and Milan, seeks to capitalize on growing investor interest in the sector.
ETFs are investment funds traded on stock markets, providing a cost-effective and straightforward investment method. The launch comes amid a recent surge in investment in space-related stocks, partly attributed to significant events like SpaceX's initial public offering and the increasing integration of artificial intelligence within the space industry.
Focus on 'New Space'
The Seraphim New Space ETF, developed in partnership with HANEtf, will focus on companies involved in satellite manufacturing, connectivity, and the emerging in-space economy. According to Seraphim, many existing space-themed investment products are heavily weighted towards traditional aerospace and defense contractors, offering limited exposure to the faster-growing segments of the 'New Space' revolution.
The ETF will comprise 23 companies, including SpaceX, Rocket Lab, and Seraphim Space Investment Trust, providing investors with indirect access to Seraphim's private company portfolio. The fund will employ a "conviction-weighted" approach, prioritizing companies deemed strong investments rather than solely market capitalization, which can concentrate investments in a few large firms.
Investment Opportunity in SpaceTech
Mark Boggett, CEO of Seraphim Space, stated that public markets previously offered limited avenues for accessing new-age space firms. He highlighted that "Old space put humans on the moon. New space is building the commercial infrastructure of the global economy." Boggett also noted that the convergence of AI and SpaceTech, alongside rising demand for connectivity, defense, and sovereign capabilities, presents a compelling investment opportunity.
Since its founding in 2016, Seraphim Space has invested in over 150 space tech companies. The global space economy is currently valued at approximately $626 billion and is projected by McKinsey to reach $1.8 trillion by 2035.