The new bearish fund debuts alongside SpaceX's first quarterly earnings report, giving traders a way to hedge or bet on sharper swings in the newly public stock.
Direxion has added a bearish single-stock ETF tied to SpaceX, launching the Direxion Daily SpaceX Bear 2X ETF under the ticker LOFD on the NYSE. The fund is designed to deliver -200% of the daily performance of SpaceX shares and arrives as the company faces two closely watched catalysts: its first quarterly earnings report and the start of its post-IPO lock-up expiration. LOFD complements Direxion's bullish Direxion Daily SpaceX Bull 2X ETF, LOFF, giving traders both long and short leveraged exposure to the aerospace company. Direxion said the product can be used to express a bearish view or hedge existing SpaceX positions during a period that may bring elevated volatility. The launch also expands the issuer's lineup of bull and bear ETFs on SpaceX and Tesla, Inc, while Direxion highlighted its Direxion Daily TSLA Bull 2X ETF, TSLL, as the largest Tesla single-stock ETF by assets. The backdrop is a fast-growing market for single-stock leveraged ETFs, which offer amplified daily exposure but are generally built for short-term tactical trading because their daily reset can cause returns to diverge from the underlying stock over longer holding periods. SpaceX's Nasdaq debut has drawn strong investor attention, and lock-up expirations can increase available share supply as early investors and employees become eligible to sell, a dynamic that often leads to sharper price moves.