TLDR Tech / Crypto
The Art of Exit Liquidity
Nasdaq's proposed index rule would assign low-float newly listed companies index weights calibrated to 5x their actual float, mechanically forcing passive funds including 401ks to buy at IPO and again at rebalance precisely when insider lock-ups expire. Crypto foundations pioneered this structure by wrapping locked token allocations in equity vehicles accessible through TradFi brokerages, and the SF venture complex is now scaling the same template through vehicles like USVC, with SpaceX targeting a mid-June IPO timed ahead of a December index rebalance. This converts public markets from value-creation venues into distribution mechanisms for insider inventory, with trillion-dollar private valuations ensuring most gains accrue before retail access.
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