SpaceX is set to join the tech-heavy Nasdaq 100 index on July 7, potentially facilitating a rise in passive investments in Elon Musk's rocket and artificial intelligence company.
Exchange operator Nasdaq confirmed the development on Friday.
Stocks included in the Nasdaq 100 index get a boost, as exchange-traded funds buy shares of the newly included firms as they seek to replicate the index's performance.
The Invesco QQQ Trust (QQQ), seen as a barometer for the artificial intelligence bull market, is among those that track the Nasdaq 100 index.
J.P. Morgan has reportedly estimated that the entry of SpaceX in the Nasdaq 100 may likely infuse $4.3 billion in passive inflows.
Entry requirements have been relaxed by Nasdaq, along with other index providers FTSE Russell, and MSCI, to make US listings attractive to companies, Reuters reported.
S&P Global has declared it was not changing the requirements for SpaceX to enter its major indices, including Wall Street's benchmark S&P 500 index. S&P intends to wait "for at least 12 months" before undertaking such a step.
The Nasdaq-100 index has 100 nonfinancial corporations listed on the Nasdaq, including tech giants Nvidia, Apple and Amazon.
The relaxed requirements include profitability metrics, the number of days required after a company goes public, and the number of shares available for trading.
Nasdaq's adopted a framework for newly public companies aimed at their speedy inclusion. The changes allow some blockbuster IPOs to enter the Nasdaq-100 index after trading for a mere 15 days.
Musk's SpaceX made its Nasdaq debut on June 12. It has made only meager profits but clocked huge losses over the past three years. SpaceX's reported net loss was $4.9 billion last year.
The Musk-backed company is expected to enter the tech-heavy Nasdaq 100 with a weighting of less than 1%, CNBC reported.
SpaceX will likely join the Nasdaq-100 before trading begins on July 7, according to the CNBC report.
SpaceX stock soared on its first days of trading but has since hovered around the $150 it started trading two weeks ago. SpaceX shares bounced back in the last hour of trading on Friday to close at $153.23, up 23 cents.
The market attention has also extended to SpaceX's competitors in the artificial intelligence sector, expected to list soon. Anthropic has filed preliminary steps toward a potential public offering while continuing to operate under private funding structures. Rival large language model OpenAI is also expected to file for an initial public offering.
Reports have surfaced that OpenAI may delay its listing. It is mulling whether to go public this year at a valuation below $1 trillion or delay its listing until 2027, the New York Times reported.
