SpaceX IPO Access on Kraken via xStocks

IPO Access lets eligible Kraken clients submit interest in the upcoming initial public offering (IPO) for SpaceX before the company lists on the open market, at the offering price inclusive of a 5% spread.

Historically, getting in around the offering price has been reserved for institutional investors and select clients with established broker relationships. For most retail investors, the only option has been to participate once a company is already trading. IPO Access is designed to change that.

SpaceX is the first IPO available on Kraken through this program.

For the SpaceX IPO, you participate through IPO xStocks (tokenized equities). The SpaceX IPO xStocks ticker is SPCXx.

IPO Access is available on the Kraken App. See the eligibility section below for where it is offered.

Where IPO Access for SpaceX is not available:

• IPO Access is not available in the United States or to US persons. Submitting interest before listing is not available in the US. US clients can trade SpaceX through Kraken once it is publicly listed.

• IPO xStocks are not available in the United Kingdom, Canada, or Australia.

• Availability varies by jurisdiction and additional geographic restrictions may apply. Eligibility is shown in your account.

You can view your pending interest orders at any time before the window closes by tapping the More tab of the Kraken App (bottom-right corner), then tapping Queued orders.

If you are participating in the SpaceX IPO via xStocks, it helps to understand what you are receiving.

xStocks are tokenized equities. Each token is backed 1:1 by an underlying share held in custody by a regulated entity, so the value of the token tracks the value of the underlying. xStocks give you price exposure to a company's equity without needing a traditional brokerage account.

A few important points about IPO xStocks:

• They provide price exposure only. They do not represent direct ownership of the underlying.

• Holders do not have voting rights.

• They can be self-custodied and moved between wallets.

• xStocks trade 24/7, including weekends (24/5 for EEA residents)

IPO xStocks are issued by Backed Assets (JE) Limited, part of the Kraken group.

The process has three stages: discovery, submitting interest, and distribution.

1. Discovery

You can find upcoming IPOs through the Upcoming IPOs section, search, or a featured card in the Kraken App. Each IPO has a detailed page showing the company information, the expected price range, the listing date, prospectus (if applicable), the ticker, and more.

2. Submit interest

During the interest window, which typically runs for about one week before the company lists, you can submit a non-binding indication of interest (or "pre-order") at the offering price. Some IPOs, including SpaceX, include a 5% spread. You can specify the amount you would like to participate with, and those funds are reserved in your account.

3. Distribution

On listing day, allocations are determined by the underwriter, not Kraken. If you receive an allocation, the corresponding IPO xStocks appear in your portfolio and you can trade from day one. Any funds that are not allocated are made available to you.

Your funds are reserved, not debited. When you submit interest, the amount you specify is locked in your account but not transferred out of your account. You cannot use reserved funds for other activities until allocation is processed or the funds are made available again.

Participation in the SpaceX IPO via xStocks includes a 5% spread. You participate at the offering price, inclusive of a 5% spread.

Submitting interest is non-binding until the final window closes. Your indication of interest is not a guarantee of an allocation.

You can cancel, but you cannot edit. If you want to change your interest amount, you should cancel your existing submission and submit a new one.

There is a final cancellation window. Before the interest window closes, you will receive a notice marking the last opportunity to withdraw. After that point, your submission becomes binding. For IPO xStocks, the cancellation deadline is set for each IPO and communicated to you.

Allocation is not guaranteed. The amount you submit interest for is not the amount you are guaranteed to receive. See the allocation section below.

Allocation is determined by the underwriter, not by Kraken. In a high-demand IPO, the underwriter decides how the offering is distributed, which may be done on a pro-rata, random, tiered, or relationship-based basis.

Because of this, you may receive:

• a full allocation (the full amount you submitted interest for),

• a partial allocation (some of the amount you submitted interest for), or

• no allocation (none of the amount you submitted interest for).

Allocation depends on demand and the underwriter's decision, and is not guaranteed. High demand may result in a partial or zero allocation.

On the listing day, the final IPO price is set and allocations are processed. If you received an allocation, your SPCXx IPO xStocks will appear in your portfolio.

Trading opens later that morning. From that point, you can trade your SPCXx allocation, including selling it, like any other asset on Kraken.

Because xStocks trade 24/7, you can trade your SPCXx allocation through the weekend, while traditional markets are closed. (24/5 for EEA residents)

Listing dates can move. If the date changes, the timeline above shifts with it.

If any of your reserved funds are not allocated, either because you received a partial allocation or no allocation, those funds are returned to your account.

Unallocated funds are returned to your available balance. Once returned, the funds are available to use as normal.

To participate in xStocks IPO Access for SpaceX, you need:

• A verified Kraken account in an eligible region.

• The required verification completed for IPO xStocks in the EEA or rest of world.

• A balance of USD, USDG, or USDC which will be used as the payment method (Clients residing in the EEA must use USD)
  

The SpaceX IPO via xStocks is not available to clients located in the UK, Canada, or Australia, and is not available in the United States or to US persons.

Eligibility and the interest window will be shown in your account ahead of the listing. If you do not see the SpaceX IPO in your app, it may not be available in your region.

IPO participation via xStocks involves a high degree of risk. Allocation is subject to underwriter decisions and demand; allocation is not guaranteed and excess funds will be returned. You participate at the offering price, inclusive of a 5% spread. The value of IPO xStocks may go down as well as up after listing. Past performance is not a reliable indicator of future results.

IPO xStocks are tokenized securities that provide price exposure only, with no voting rights.