Virgin Galactic launches 22% higher rockets after investor Tesla Ark reveals it will launch space-themed ETF

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chamath palihapitiya richard branson galactic virgin there
Virgin Galactic co-founder Sir Richard Branson, CEO George Whitesides, and Social Capital CEO Chamath Palihapitiya pose together outside the New York Stock Exchange ahead of Virgin Galactic trading on October 28, 2019.

Brendan McDermid / Reuters

  • Virgin Galactic shares climbed to 22% on Thursday.
  • The space tourism group could be added to Ark Investment Management’s future space exploration ETF.
  • The fund manages a total of $ 42 billion in ETF products, Bloomberg estimates.
  • Visit the Business Insider homepage for more stories.

Virgin Galactic stock climbed 22% on Thursday, increasing its market cap by around $ 1.4 billion, after a major investment fund announced plans to launch an exchange-traded fund on the space theme.

Investors in the commercial spaceflight company – which counts billionaire entrepreneur Richard Branson as co-founder and billionaire investor Chamath Palihapitiya as chairman – are betting it will be included in Ark Investment Management’s ARK Space Exploration ETF.

Ark, led by Founder and Chief Investment Officer Cathie Wood, already manages seven ETFs focused on areas such as genomics, 3D printing, robotics and financial technology. Its flagship Ark Innovation ETF portfolio counts Tesla as its largest stake.

Read more: The space industry will grow by more than $ 1 trillion over the next decade, according to Bank of America. Here are the 14 stocks best positioned to take advantage of the boom.

Thanks to a massive influx of capital from investors in recent months, Ark now oversees around $ 42 billion in ETF products – a big increase from less than $ 4 billion a year ago, according to Bloomberg estimates.

Wood and his team plan to actively manage their space ETF. They intend to invest in domestic and foreign companies engaged in space exploration and innovation and hold between 40 and 55 shares.

Read more: ETF provider whose specialty funds have crushed the market explains how to capitalize on the PSPC craze – and shares 4 to watch in 2021

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