The Space Show Presents Andrew Chanin on SpaceX IPO, UFO ETF and more.
The Space Show Presents Andrew Chanin, Friday, July 17, 2026 Quick Summary: This was a Friday Morning Space Show program where host David Livingston interviewed Andrew Chanin, Co-founder and CEO of ProcureAM, about their UFO ETF (space exchange-traded fund) and SpaceX’s recent IPO performance. Andrew explained that SpaceX was added to UFO at approximately 4.61% weighting after qualifying under new fast-track inclusion rules for pure-play mega cap space IPOs, though the stock has since declined below its IPO price due to market selloffs following the initial hype. The discussion covered how UFO’s index methodology defines space companies using revenue thresholds and the Karman line, with SpaceX currently classified as a pure-play space company despite potential future changes if it merged with Tesla. Andrew noted that while SpaceX’s performance has impacted the broader space industry, the company’s public status now allows more investors to gain exposure to space-related businesses, and he compared the current market environment to previous space investment cycles. Detailed Summary: Andrew discussed the recent addition of SpaceX to the UFO ETF, explaining that it was included at a 6% weighting due to its mega-cap space IPO status, with potential to increase to 15% at future rebalances. He noted that SpaceX’s stock price has declined from its IPO price, similar to other space industry stocks, and discussed how lockup periods and increasing share supply could impact the market. The conversation also covered UFO’s portfolio allocation across sectors and how SpaceX’s classification fits within the fund’s industry breakdowns. Andrew confirmed that UFO (SpaceX) is listed on NASDAQ and explained the fund’s rules regarding pure play versus diversified aerospace companies. He discussed how a potential merger between SpaceX and Tesla could affect the company’s qualifications for the fund, noting that if less than 50% of revenue came from space but more than $500 million annually came from space, it could still potentially qualify but at a lower weight. Andrew also addressed questions about SpaceX’s complex share release schedule and lockup periods for different types of investors, explaining that these restrictions are common to prevent insiders from selling large stakes quickly. Andrew also discussed the recent sell-off in the UFO ETF, drawing parallels to the post-SPAC boom bust cycle and suggesting that current market volatility presents an opportunity to evaluate space industry companies based on individual merits rather than broad market trends. He explained that while delays or failures could impact individual stocks, the passive ETF structure tracks the Vetti Space Index methodology and rebalances quarterly, allowing for natural adjustments in company weightings. Andrew noted that past examples like AST SpaceMobile demonstrated how companies could rapidly increase their fund weightings during quarters before being rebalanced back to index requirements. Dr. Kothari presented his company’s design for a ramjet powered by a molten salt reactor, asking if it would qualify as an aerospace application under a space index. Andrew explained that the index provider uses the Karman line as the definition for space, so technologies operating below this line would be considered aerospace rather than space companies. Andrew noted that while technology could potentially qualify for aerospace or defense funds, the index has specific rules requiring pure-play space companies with revenue derived from space-related activities. David and Andrew discussed the potential for data centers in space, particularly in light of emerging political platforms opposing data center construction. Andrew explained that while space data centers could address energy and water requirements, there are ongoing innovations in energy-efficient data center technologies that