The initial public offering of Elon Musk’s SpaceX has reportedly seen an oversubscription rate running at almost ​four times the planned offering size, with some analysts suggesting it could be squeezing liquidity from the market.

SpaceX’s IPO (SPCX) has attracted over $250 billion in investor demand, far exceeding the $75 billion it is seeking to raise in what would be the largest public offering ever, with the firm valued at $1.8 trillion, Reuters reported.

Bankers and investors say it is the latest sign that demand is strong, ​as long-only funds have put in “sizable orders,” according to the sources.

Pricing is expected on Thursday, though demand figures can still shift before then, as some large institutional investors tend to submit orders late in the process.

Tech stocks tumble in IPO hype rotation

The IPO comes at a time of extreme volatility in markets, with US tech stocks tumbling and crypto markets shedding more than $180 billion over the past week.

Some analysts have speculated that the market retreat could be partially driven by selling to raise funds for the SpaceX IPO.

“I’m seeing this exactly as the classic pre-mega-IPO liquidity squeeze playing out in real time,” Bitrue Research Institute research lead Andri Fauzan Adziima told Cointelegraph.

“The tanking in crypto and tech stocks right now isn’t random, it’s the direct ‘IPO tax’ from SpaceX’s record-breaking deal, with pricing tomorrow and trading Friday at $135 for a $1.8 trillion valuation,” he said.

“Oversubscription with massive orders confirms the hype, but that excitement is sucking liquidity out of correlated risk assets today, hitting crypto hardest because it’s the most retail-driven and sentiment-tied to growth/tech narratives.”

This isn’t the start of a broader bear market, it’s a “temporary rotation,” he said.

Tech stocks take a hit (five-day) ahead of SpaceX IPO. Source: Barchart 

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Crypto exchanges rush to offer pre-IPO perps

SpaceX’s growth story is largely tied to its satellite internet business, Starlink, which has become a major source of revenue and profitability. The firm has also touted a $23 trillion market opportunity it claims is ahead for its artificial intelligence offerings.

Crypto exchanges have been quick to capitalize on the IPO hype, with Binance, Coinbase, Kraken and Bybit launching pre‑IPO perpetual futures for SPCX this month.

Shunyet Jan, head of spot and derivatives at Binance, told Cointelegraph that the strong early traction for Binance’s pre-IPO perpetual futures “reflects growing user interest in gaining regulated-style market exposure to high-profile private companies through this native product.”

Since launch, the products have generated $2.1 billion in cumulative trading volume in just 18 days on Binance, with participation spanning more than 130 countries.

Meanwhile, decentralized exchange Hyperliquid has seen $70 million in trading volume over the past 24 hours, with the current price for its synthetic SpaceX pre-IPO perps at $157, down from $210 when the derivatives launched, according to Hyperdash.

This indicates strong demand with open interest (OI) exceeding $115 million on Hyperliquid alone, and a current prediction of a $1.97 trillion SpaceX valuation.