The holding ratio of SpaceX in the ERShares Private-Public Crossover ETF has soared to over 40%, raising concerns about liquidity risk

Wallstreetcn
2026.03.06 16:28

The ERShares fund (XOVR) has increased its holding in Elon Musk's SpaceX from approximately 37% to over 40%, far exceeding the U.S. Securities and Exchange Commission (SEC) regulation that limits open-end funds' holdings of illiquid securities to 15%.

Due to the fund's priority of selling liquid public stocks when responding to redemptions, the proportion of illiquid SpaceX assets in the portfolio has been passively elevated.

This phenomenon has once again sparked intense debate in the market about whether "daily liquidity" ETF products are suitable for accommodating non-listed assets. Industry experts point out that placing hard-to-trade and value assets into ETFs will exacerbate the redemption pressure and valuation opacity risks for funds in extreme market conditions

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