Seraphim Space is set to launch an exchange traded fund (ETF) this week that focuses exclusively on the modern space economy, aiming to broaden retail investor access to the rapidly growing sector. The new fund, described by Seraphim as the first worldwide to target the “new space economy,” is scheduled to list on three European exchanges on Wednesday.

The ETF will offer exposure to approximately 23 companies, including well-known space technology firms such as SpaceX, Rocket Lab, AST SpaceMobile, and HawkEye 360. It will also include Seraphim Space Investment Trust, which provides investors with indirect exposure to a portfolio of unlisted companies in the space industry. Operated by HANetf, an independent provider, the fund will be “conviction-weighted” and undergo an annual reset. Additionally, a fast-track mechanism will allow newly public companies in the sector to be added more quickly.

Mark Boggett, chief executive of Seraphim Space, explained that the product addresses a market gap, where many existing ETFs in the space sector are “tilted in the wrong direction.” He noted that many current funds mixing “old space” and “new space” companies tend to be dominated by large-cap legacy aerospace firms, leading to an overweighting in traditional companies and an underweighting in newer entrants. Old space companies often leverage long-established technologies with significant built-in redundancy, which tend to be costly.

According to Boggett, the new space economy represents a shift in approach, driven by companies like SpaceX. These ventures focus on developing technology that is initially inexpensive rather than highly reliable and then iterating designs to achieve dependable performance over time. This approach contrasts with traditional aerospace models that prioritise established reliability despite higher costs.

The space economy is experiencing rapid growth; a McKinsey report estimated its value could grow from $600 billion currently to $1.8 trillion by 2035. Investment in private space technology firms is also accelerating, with $23 billion invested over the 12 months through June, up from $9.7 billion the previous year, according to Seraphim’s SpaceTech Investment Index.

By offering a dedicated vehicle that concentrates on the emerging segment of the space sector, Seraphim’s new ETF seeks to provide investors with targeted exposure to the disruptive innovations and companies shaping the future of space commerce and technology.