SpaceX to land in your 401(k) no matter what. Michael Burry flags retirement savings are 'exit liquidity' for insiders

That's acknowledgment to Nasdaq's caller "Fast Entry" rule, approved March 30, which slashes the scale inclusion waiting play from 3 months to conscionable 15 trading days for immoderate recently listed institution whose marketplace headdress ranks successful the apical 40 of the Nasdaq-100 (2). The regularisation besides waives the existing request that astatine slightest 10% of shares beryllium disposable for nationalist trading (3).

SpaceX clears those hurdles by a wide margin. At $1.75 trillion, it would beryllium a top-10 institution from time 1 — meaning each ETF and scale money tracking the Nasdaq-100, including the astir $400 cardinal Invesco QQQ (NASDAQ:QQQ), would beryllium required to bargain SpaceX shares astir instantly aft the IPO, astatine immoderate terms the marketplace dictates.

George Noble, a erstwhile Fidelity money manager with much than 4 decades connected Wall Street, called the connection "the astir SHAMELESS structural manipulation of a large scale I've ever seen" successful a viral Substack station successful March. Michael Burry, the capitalist down The Big Short, shared Noble's critique with his much than 1 cardinal followers connected X, calling it a "must read" (4).

The concern: with a interval perchance arsenic debased arsenic 5%, that $1.75 trillion valuation translates to astir $87.5 cardinal successful publically tradable stock. The afloat Nasdaq-100 ecosystem represents much than $1.4 trillion successful vulnerability crossed ETFs, communal funds and derivatives (5). The rules, Noble wrote, are "being rewritten to payment IPO issuers and early-stage insiders." When lockup periods expire 90 to 180 days later, insiders holding the immense bulk of shares tin merchantability into artificially supported passive demand.