Article by Edward Sheldon
How to Short SpaceX Stock with Inverse ETFs
July 28, 2026 | Research Insights
Traders have been aggressively shorting SpaceX stock recently and they’ve been having success. According to analytics firm Ortex Technologies, short sellers have racked up $15.5 billion in paper profits as the stock has slumped post IPO1.
In this article, we are going to look at how it’s possible to short SpaceX stock with inverse ETFs. Here’s how these products work.
Inverse ETFs Explained
Inverse ETFs are financial instruments designed to deliver the inverse (opposite) performance of a specific index, asset class, or security. They allow traders and investors to profit from – or hedge against – declining market prices.
As an example, an inverse ETF focused on SpaceX stock will aim to provide a gain if SpaceX stock falls. If the stock rises, the ETF will lose value.
Inverse ETFs are available with different amounts of leverage. Today, there are 1x, 2x, and 3x inverse ETFs available.
Whereas a 1x inverse ETF will aim to provide -100% the performance of the underlying security minus fees and expenses, a 2x inverse ETF will aim to provide -200% the performance minus fees and expenses.
So, for instance, if SpaceX stock fell 3%, a 1x inverse ETF would aim to provide a return of +3% before fees and expenses. Meanwhile, a 2x inverse ETF would aim to provide a return of +6% before fees and expenses.
How Daily ETFs Work
It’s worth noting that most stock-specific inverse ETFs are daily ETFs. This means that performance is only designed to match the inverse performance of the underlying asset for a single trading day.
With these ETFs, performance resets at the end of every trading session. So, if you were to buy an inverse daily ETF and hold it for five days, you do not own a standard five-day short position; you essentially own five separate one-day short positions chained together.
The Advantages of Inverse ETFs
One of the big advantages of inverse ETFs is that they enable traders and investors to bet against specific securities via regulated, liquid ETF structures without the operational burden of a short-selling account. Investors can trade these products in their regular brokerage accounts without having to deal with the hassle of borrowing stock to short it, margin calls, and stock lending fees.
Another benefit is that losses are limited to the value of the investment. With traditional short-selling strategies, losses are theoretically infinite.
The Disadvantages of Daily Inverse ETFs
On the downside, with daily inverse ETFs, there’s more pressure to get the timing of the trade right. Because if the underlying asset spikes against you, the ETF locks in that loss at the end of the trading session.
By contrast, with a traditional short position, you can be wrong today, but right over a longer period if the asset in focus eventually moves your way. So, there’s less timing pressure.
An Inverse SpaceX ETF from Leverage Shares by Themes
To help traders bet against SpaceX stock, Leverage Shares by Themes launched the 2x Short SPCX Daily ETF (SSPC) in June. This product aims to provide -200% the performance of SpaceX stock, minus fees and expenses.
Footnotes:
1Reuters, Short sellers notch $15.5 billion profit as SpaceX shares slide, as of July 23, 2026
