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A modest investment in SpaceX that thrust a niche fund into the limelight in recent months has morphed into a monster position, testing the very capacity of exchange-traded funds to hold unlisted assets.Around 37% of the ERShares Private-Public Crossover ETF is now invested in Elon Musk’s rocket ship maker, a figure that has climbed well above 40% in recent days, according to data compiled by Bloomberg.It’s practically unheard of for a private firm to account for so much of a single ETF, since the US Securities and Exchange Commission limits open-ended vehicles to investing just 15% of their assets in illiquid securities. That rule is intended to ensure they can meet redemptions, particularly at times of stress.The shift reflects the mechanics of managing a daily-traded fund that owns hard-to-sell assets. The SpaceX stake grew during a period of heavy inflows and a jump in the private company’s valuation. As investors later pulled money out, the fund met redemptions largely by selling liquid public stocks rather than the SpaceX holding, which isn’t easily traded. That left the portfolio increasingly dominated by the private investment.The rapid shift in the composition of XOVR, as the fund is known, threatens to re-energize a debate about whether the hyper-liquid ETF structure can safely contain private assets, as well as what classifies as illiquid and how such investments get valued.“It makes me more dubious about the proposition of stuffing hard-to-trade assets into daily-liquidity vehicles like ETFs,” said Jeffrey Ptak, managing director at industry data provider Morningstar Inc, who wrote a report criticizing the fund last week. “The ETF is saddled with a huge concentration in a hard-to-trade-and-value security.”In the past two years, fund issuers have been racing to find ways to add unlisted assets into ETFs to give retail investors easy access to private markets. The major sticking point has been the liquidity mismatch: ETF shares change hands all day in the cash market, in extended trading and increasingly even overnight. Private assets are infamous for barely trading at all.XOVR is among just a handful of ETFs that have added private securities to their portfolios. The SpaceX stake, currently valued at $205mn, is held via a special-purpose vehicle for which exact details are unavailable.Joel Shulman, founder and chief investment officer of ERShares, said the firm has a plan for managing the SpaceX position, but declined to provide details.“There is robust investor demand, which should support liquidity and facilitate orderly sales if needed in a relatively short period of time,” Shulman said. “However, we have high conviction for this investment and would prefer to maintain the investment for the benefit of our shareholders.”The SEC declined to comment on XOVR’s SpaceX exposure.Even with a holding in one of the world’s most coveted private companies, XOVR has struggled to keep pace with broader technology stocks. The fund returned 12% last year, as the Invesco QQQ Trust Series 1, which tracks the Nasdaq 100 Index, returned 21%.XOVR is now on track to post a fourth consecutive week of outflows, with its total assets more than halving to under $600mn from a peak of $1.8bn last month.As part of a regulatory update this week, ERShares beefed-up the risk warnings in XOVR’s prospectus. This included the section on risks related to privately offered securities. Within the added language, it says: “There cannot be any guarantee an SPV or other private fund will be successful.”Shulman said that as the ETF has expanded its exposure to privately offered securities through SPVs, “it is appropriate to ensure that the prospectus clearly describes the associated risks.”“The disclosure language should not be interpreted as reflecting any change in the structure or quality of the underlying investment,” he said.The total operating expenses of the fund were also increased to reflect costs related to the SpaceX holding. Shulman said those expenses apply to the last reporting period and a previous structure of the SPV, and “does not reflect the economics of the restructured vehicle going forward.”The majority of cash in the $14tn US ETF market is tied up in index funds, but the industry has been pushing into more complicated and niche corners of the investment world like cryptocurrencies and derivatives strategies. In a survey of institutional investors, almost all of the 325 respondents said they were willing to access private markets through an ETF wrapper, Brown Brothers Harriman said this week.XOVR is demonstrating some of the practical problems of such an approach, but it’s not alone. The Baron First Principles ETF (RONB), which directly invests in SpaceX shares, has also seen its stake in the rocket company exceed the SEC’s illiquidity threshold at times. But issuer Baron Capital has classified the holding as “less liquid” with the regulator, a category which has no percentage limits.Under SEC liquidity rules, fund managers have some discretion in classifying holdings based on how quickly they believe the assets can be sold without significantly affecting their value.XOVR garnered attention in 2024 when it first added exposure to Musk’s firm. Interest intensified in December after Bloomberg News reported SpaceX was targeting a potential 2026 listing at a valuation of roughly $1.5tn. As the only US-listed ETF offering exposure to the company at the time, XOVR drew significant inflows.Critics pointed out that as assets poured in, the fund’s SpaceX stake became increasingly diluted, potentially limiting the upside for investors. Morningstar’s Ptak has also noted inconsistencies with how ERShares values its SpaceX stake. ERShares responded by issuing a memo titled, in part, “Transparency Reset.” 

Four astronauts returned safely to Earth early Thursday after an undisclosed serious medical condition affecting one of them forced an end to their International Space Station (ISS) mission a few weeks early.Their SpaceX capsule splashed down in the Pacific off California, capping a 10-hour-plus descent from the space station and fiery re-entry through Earth's atmosphere.It was the first time that the National Aeronautics and Space Administration (Nasa) has cut short the rotation of an ISS crew due to a health emergency.The Crew Dragon spacecraft dubbed Endeavour parachuted into calm seas off San Diego about 12.45am PST (0845 GMT).The finale of the abbreviated mission was carried live by a Nasa-SpaceX webcast.Moments later, several dolphins were visible swimming near the capsule, their dorsal fins breaking the surface of the ocean, as the spacecraft bobbed gently upright in the water."On behalf of SpaceX and Nasa, welcome home," mission control told the crew moments after landing."It's so good to be home, with deep gratitude to the teams that got us there and back," Nasa astronaut Zena Cardman, 38, replied.Joining her on the return voyage were fellow US astronaut Mike Fincke, 58, Japanese astronaut Kimiya Yui, 55, and Russian cosmonaut Oleg Platonov, 39.In less than an hour, SpaceX recovery teams had secured their heat-scorched capsule and hoisted it onto the deck of a retrieval vessel, then helped the astronauts out of the spacecraft for their first breath of fresh air in nearly 24 weeks.Each of the crew members, still garbed in helmeted white-and-black space suits, smiled and gave a thumbs-up as they emerged and were helped to their feet.It was not evident from their appearance which one was ailing.Unable to bear their own weight on Earth after spending months in microgravity, the four were each assisted onto special gurneys and escorted to an onboard medical station for routine checkups at sea.Afterward they were to be flown to a local hospital for further medical exams, SpaceX said.The decision to bring all four home early was announced January 8, with Nasa Administrator Jared Isaacman saying one of the astronauts faced a "serious medical condition" that required immediate attention of doctors on the ground.Isaacman was also present at mission control for the splashdown Thursday.Nasa officials have not identified the crew member of concern or described the nature of the medical issue, citing privacy requirements.Fincke, a retired Air Force colonel who has now logged five missions to space, and Cardman, a rookie astronaut and geobiologist, had been scheduled to conduct a six-hour-plus spacewalk last week to install hardware outside the station.The spacewalk was canceled on January 7 over what Nasa then characterised as a "medical concern" with an astronaut.Nasa Chief Health and Medical Officer James Polk later said the medical emergency did not involve "an injury that occurred in the pursuit of operations”.As the 11th regular ISS crew flown to orbit by SpaceX, Cardman, Fincke, Yui and Platonov arrived at the space station following a launch from Florida in August.They departed on Wednesday afternoon on a 10 1/2-hour flight home, ending a 167-day mission.Crew-12 is expected to launch to the space station in mid-February with four more astronauts.In the meantime, the orbiting laboratory remains occupied by Nasa astronaut Christopher Williams and two cosmonauts who flew to the ISS aboard a Russian Soyuz spacecraft in November.The Russian Roscosmos space agency operates alongside Nasa on the outpost, and the two agencies take turns transporting a citizen of the other country to and from the orbiter – one of the few areas of bilateral co-operation that still endure between the United States and Russia.Continuously inhabited since 2000, the ISS seeks to showcase multinational co-operation, bringing together Europe, Japan, the United States and Russia.Located some 400km (248.5 miles) above Earth, the ISS functions as a testbed for research that supports deeper space exploration – including eventual missions to return humans to the Moon and onward to Mars. 

SpaceX successfully launched the Sentinel-6B ocean-mapping satellite from Vandenberg Space Force Base in California early Monday, marking a major step in global efforts to track rising sea levels.The satellite lifted off aboard a Falcon 9 rocket, with NASA spokesman Derrol Nail announcing, "Sentinel-6B rising, extending nearly four decades of the precise sea-level record from space."Sentinel-6B, part of the EU's Copernicus Earth-observation program, will measure sea-surface height with high accuracy, continuing the work of its predecessor, Sentinel-6 Michael Freilich, launched in 2020. The mission is considered the global reference standard for monitoring sea-level rise -- a key indicator of climate change.According to the European Space Agency (ESA), global sea levels have risen by nearly 10 centimeters over the past 25 years, making precise long-term monitoring an international priority.The satellite carries an ESA-developed radar altimeter and a NASA microwave radiometer that measures atmospheric water vapor to improve the accuracy of sea-level readings.SpaceX confirmed that the Falcon 9's upper stage deployed Sentinel-6B about 57 minutes after launch, while the rocket's first stage returned to Vandenberg for a successful landing -- its third mission to date.

The American space-technology company SpaceX conducted a dual-launch operation this week, dispatching two batches of Starlink Internet-satellites aboard two Falcon 9 rockets in the same launch window.In a statement, the company said the first Falcon 9 took off from NASA's Kennedy Space Center in Florida, carrying 29 satellites into low Earth orbit. The first-stage booster successfully landed on a SpaceX drone ship in the Atlantic Ocean about 8.5 minutes after liftoff.Within the same launch window, a second Falcon 9 launched a further batch of 29 satellites. Its first-stage booster also achieved a successful drone-ship landing, while the upper stage deployed the satellites on schedule.These missions advance the Starlink network, a vast satellite constellation aiming to provide global Internet coverage; currently, thousands of satellites are already in orbit. SpaceX said such launches help maintain the constellation's frequent and rapid replenishment.The company described the flights as part of a "record pace" of Falcon 9 launches this year as it scales up capacity and reduces turnaround time between missions.

South Korea has launched its fifth homegrown military reconnaissance satellite aboard a SpaceX Falcon 9 rocket from a US space base in Florida, the country's Ministry of National Defense announced Sunday. The Falcon 9 lifted off from Cape Canaveral Space Force Station as scheduled and successfully placed the satellite into orbit about 14 minutes after liftoff, according to the ministry.According to Yonhap News Agency, the new satellite, equipped with a synthetic aperture radar (SAR) system, is the fifth and final satellite under South Korea's plan to deploy five spy satellites by the end of this year. The constellation aims to enhance real-time monitoring of North Korea and reduce Seoul's reliance on US satellite imagery.Operating a cluster of five reconnaissance satellites will enable the rapid and precise detection of potential North Korean military activities, the ministry said, noting that the system will reinforce South Korea's three-axis deterrence structure — which includes preemptive strike, missile defense, and retaliatory capabilities.Once all five satellites are operational, South Korea is expected to achieve round-the-clock surveillance, with the ability to observe North Korea roughly every two hours.South Korea launched its first military spy satellite in December 2023, equipped with electro-optical and infrared sensors capable of capturing high-resolution imagery. It has since launched three more SAR-equipped satellites capable of collecting data in all weather conditions and at any time of day.

SpaceX launched on Monday the eleventh flight of its Starship spacecraft from its Starbase facility in Texas, on a test mission aimed at evaluating the reusable system's capability to launch satellites and, in the future, transport humans to the Moon and Mars. The Starship vehicle, consisting of the upper stage mounted atop a Super Heavy booster, lifted off at around 23:23 GMT. After stage separation, the booster returned for a controlled splashdown in the Gulf of Mexico about ten minutes after liftoff, while the upper stage continued on its planned suborbital path before splashing down in the Indian Ocean. According to SpaceX, this test flight focused on improving re-entry performance and heat shield durability, as well as validating in-space engine restart capabilities ahead of future operational missions. The Starship spacecraft is part of NASA's Artemis program and is scheduled to land astronauts on the Moon by 2027. The rocket is also expected to play a major role in launching larger Starlink satellites, which support SpaceX's goal of expanding global broadband internet coverage and advancing preparations for future missions to Mars.

Space Exploration Technologies Corp. (SpaceX) successfully launched 28 Starlink satellites into low-Earth orbit from Cape Canaveral Space Force Station in Florida. The Falcon 9 rocket lifted off from Space Launch Complex 40 at 06:46 GMT, marking the company's 130th mission of the year and the rocket's 126th flight in 2025. About 8.5 minutes after liftoff, the first stage of the Falcon 9 successfully landed on the droneship A Shortfall of Gravitas in the Atlantic Ocean. This was the eighth launch and landing for the booster, designated B1090, which had previously supported several missions, including CRS-33, O3b mPOWER-E, Crew-10, Bandwagon-3, O3b mPOWER-D, and two earlier Starlink missions. The flight, designated Starlink 10-59, expands SpaceX's rapidly growing Starlink constellation, which now includes more than 8,500 satellites designed to provide global broadband internet coverage. In addition to the Falcon 9 missions, SpaceX has also conducted four suborbital test flights of its Starship rocket this year, with a fifth test scheduled for October 13.