00:00So talk to us about what Friday looked like over at Defiance HQ, because as Eric said, this is a
00:06ETF. You take a look at the portfolio right now, though.
00:10It's just SpaceX. So I mean, what kind of maneuvering, what did the choreography look like on Friday to get
00:15the portfolio to look like this?
00:17Well, on Friday, the world got its first ever two times levered space ETF that held SpaceX.
00:24So essentially, we bought to market the first 2x SpaceX ETF. And, you know, we were super happy about that.
00:30With the CTF, as you mentioned, so this SPCL ETF is a 2x Defiance space ETF.
00:35It's been around since April, and it holds a concentrated basket of space companies, and it can hold from one
00:41to five stocks in it.
00:42Now, SpaceX is, I think, you know, very clearly and arguably the best commercial representation of the space economy.
00:49And so, as Eric mentioned off camera, you know, going into the open on Friday, we bought SpaceX shares at
00:58the IPO price.
00:59So that's also very important. The investors had a great experience who went into this ETF on that day because
01:05we were able to source IPO shares
01:06through our partners at that 135 price. And so, lo and behold, we have the SpaceX ETF SPCL trading.
01:14But it's going to stay a space-themed ETF, is it not? Or is this going to be a SpaceX
01:20ETF for the time being?
01:22Well, so the portfolio, again, it's a 2x space ETF, and the portfolio can hold one to five names.
01:27So in the future, it could hold other names within the ETF. That being said, we obviously are laughing here,
01:32but we have SPCU as well,
01:34which is the 2x SpaceX ETF. And that's a pure play 2x SpaceX ETF. So, you know, we have this
01:40mode, essentially.
01:41We also have a short fund SPCQ, right? So we want investors to have the full gamut of opportunities in
01:46leveraged space trading.
01:48I'll tell you what's going to happen. So they have both of them on the market. Whichever one gets more
01:52volume,
01:53they're simply going to fold the other one in. That's what I would do. Who needs a 2x space theme?
01:57The big business isn't 2x SpaceX. Just ask the 2x NVIDIA and 2x Tesla people. 2x themes, eh.
02:04But you have 41 million traded in SPCL. That's the one I went over. The actual 2x SpaceX one only
02:11has 25 million.
02:12So my guess is if these people buying this one all of a sudden see a bunch of other space
02:16stocks,
02:17they'll be disappointed. Or other random names. Yes. But talk us through, I mean, obviously,
02:23it's better to ask for permission than forgiveness sometimes. Or wait, did I get the reverse?
02:26Forgiveness rather than permission. There you go. MJ did it back with the cannabis.
02:30But just tell us, why is this so intense? How big do you think this is going to get for
02:35the 2x space
02:37category? Will it surpass NVIDIA and Tesla, which are the two biggest right now?
02:41I think it's hard to predict the future, but this is arguably, well, this is the biggest IPO ever of
02:46our time, right?
02:47We had that massive come to market. Investors have just been clamoring at the bit to get exposure to SpaceX.
02:54And the same seems to be true of the leveraged SpaceX ETF. So I think that, you know, we're talking
02:59about SpaceX.
03:00We're talking about Elon Musk. We're talking about the different pillars of potentially being the biggest hyperscaler AI company,
03:05being the biggest space company, satellite company, aerospace and defense communications, Earth observation.
03:13Again, it's just, you know, the opportunity here is just endless. And so I would be surprised if we didn't
03:19see billions of dollars
03:20coming into the various SpaceX-related products.
03:22Yeah, absolutely. And to go back to, you know, some of the metaphors that Eric was using, I mean,
03:27on the scale of buying an island to maybe withering away and dying, certainly I would prefer to be on
03:33that island.
03:33This is the ETF equivalent of Survivor or, you know, but real life.
03:39Yeah. Or the Hunger Games. There's many places we could do it.
03:42Lord of the Flies. Yeah. We could go on and on.
03:44It also shows you the excitement of investors, right?
03:45They just want exposure to this innovation, to this next gen of technology, to this fourth industrial revolution.
03:51This is reality. We're seeing it play out now in the market week by week.
03:55Is this a blueprint for what you're going to do with Anthropic and OpenAI?
03:59Well, we're very much excited about those stocks coming to the market, too,
04:03and you'll just have to stay tuned in terms of what we do there.
04:06Total shifting gears, you guys launched an autism ETF.
04:10Yes.
04:10Which I thought was very interesting.
04:13What's that about and what's the case to invest in that?
04:17Yeah. I mean, so the case is just the massive population of children in this world who are diagnosed with
04:23autism disorder
04:24and the cost per family of managing this, whether it's through educational resources, behavioral resources,
04:31pharmaceuticals, doctor's visits, research, things like this.
04:34It ends up costing about three million dollars per child to support this.
04:37And our company's founder, Matt Belsky, and our chief legal counsel, Gabriela Belsky,
04:43have a son who was diagnosed with autism.
04:45And so for his whole life, they've been struggling with just getting him the support, the services that he needs.
04:50And so this was really born out of wanting to invest in the companies that can make a difference in
04:55the future
04:55and perhaps come up with cures and support and services for children suffering from this difficult diagnosis here
05:03that just doesn't have the support out there.
05:05And so that ETF was born from this.
05:08And the great thing about this is we donate 100 percent of the profits for two years to autism charities
05:14and causes
05:14and at least half of the profits after that.
05:16So it's very much a philanthropic, you know, we want the money to go to the right place
05:20and make a difference in autism here.
05:22Okay. The ticker, by the way, for this is ASD.
05:24Katie. Yeah. And you take a look at your holdings.
05:27You have 37 by the Bloomberg terminal right now.
05:31And I do wonder, like, as you said, this is a philanthropic sort of minded ETF.
05:35With that in mind, I mean, who is the natural audience for an ETF for a fund such as this
05:40one?
05:41And since, you know, there's there's not many products that come out with that sort of goal in mind.
05:46Yeah. And I think it's it's a really interesting thing to think about.
05:50So there are pensions endowments.
05:52There are lots of large asset managers out there that simply allocate a portion of their investments
05:56to companies, ETFs, products that donate to charitable organizations and causes that they believe in.
06:02There are other investors that will simply believe in this and have a family member,
06:06a child, a cousin, an uncle that suffers with ASD or autism or profound autism.
06:12I think we probably all know somebody in that camp.
06:15And then, you know, the third thing is there's a really good investment case for this.
06:19Right. This is this is the future of medicine.
06:21This is the future of R&D.
06:23And if you think about AI and the things that, you know, will happen in pharmaceuticals
06:27and will be integrated to these types of stocks, the future here for revenue generation is great.
06:32And there's all these companies that aren't public.
06:34For example, you've got like a Yamo Pharmaceuticals is like these companies are doing research for autism,
06:39drug cures that just don't exist in the market.
06:41And if those companies go public and get to stage three trials and things like this,
06:45you know, you'll really have access to a really great pharmaceutical, biomedical type of ETF here.
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