Index Funds Gobbling 30% of SpaceX Float Risk Driving Price Up

The prospect of billions of dollars of oncoming demand for SpaceX stock from index-tracking funds risks creating a feedback loop that drives the shares of Elon Musk’s company even higher, academics and market observers have warned.

Nasdaq Inc., FTSE Russell and MSCI Inc. are all set to fast-track the company into their gauges, after the first two index providers changed rules to allow its early addition. About 30% of SpaceX’s free float is now set to be owned by passive investors after just 15 days of trading, according to Intropic, a provider of index-rebalancing forecasts. That figure would be ...