SpaceX Hype Spurs Crypto Shadow Market for Pre-IPO Bets (1)

As SpaceX edges closer to what could be the largest initial public offering in history, a corner of the crypto market is already pricing the debut — and recent history suggests the numbers are worth watching.

Traders are turning to perpetual futures, contracts with no expiry, to take a position on a company’s expected listing price months before an IPO. These contracts tracking Elon Musk’s aerospace giant launched this month and have averaged nearly $18 million in daily trading volume over two weeks.

Unlike a stock, the contracts offer no legal claim on the underlying company and carry ongoing ...