Cathie Wood Buys Rocket Lab as ARK Sees SpaceX's Starship Shift Squeezing Launch Capacity
SpaceX’s (NASDAQ:SPCX) push to shift toward its massive Starship rocket could create an unexpected opening for rival launch providers, and Cathie Wood’s ARK Investment Management is positioning its ETFs accordingly.
ARK analysts Tasha Keeney and Daniel Maguire recently warned that the U.S. could face a launch bottleneck if SpaceX scales Starship aggressively while eventually winding down Falcon 9. Reuters had reported earlier that Falcon 9 is already fully booked for some customers through 2028-29, while Starlink accounts for roughly 79% of Falcon 9 missions, up from 54% in 2020.
That potential capacity crunch could benefit Rocket Lab Corp (NASDAQ:RKLB), which ARK identified as one of the companies that could capture market share if its medium-lift Neutron rocket delivers.
ARK appears to be putting money behind the thesis. The firm bought 233,482 Rocket Lab shares worth roughly $16.6 million last week through three ETFs — the ARK Innovation ETF (BATS:ARKK), ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) and ARK Space & Defense Innovation ETF (BATS:ARKX).
ARKX Offers The Most Direct ETF Exposure
Among the three funds, ARKX provides the clearest ETF expression of the space-launch thesis, with Rocket Lab accounting for about 6.1% of the portfolio, while SpaceX accounts for roughly 10.6%. Other major holdings include L3Harris Technologies, Inc (NYSE:LHX), Kratos Defense & Security Solutions (NASDAQ:KTOS) and Intuitive Machines Inc (NASDAQ:LUNR).
ARKK and ARKQ provide broader exposure to innovation and autonomous technologies while still holding RKLB.
More Ways to Play the Theme
The Procure Space ETF (NASDAQ:UFO) provides broader exposure across the satellite ecosystem. SpaceX accounts for about 15.4% of the portfolio and Rocket Lab roughly 5.4%, alongside companies such as AST SpaceMobile (NASDAQ:ASTS), EchoStar Corp (NASDAQ:ECHO), and Viasat Inc (NASDAQ:VSAT).
A third option is the SPDR S&P Kensho Final Frontiers ETF (NYSE:ROKT), which takes a more diversified aerospace and defense approach. Rocket Lab, Firefly Aerospace (NASDAQ:FLY), Voyager Technologies Inc (NYSE:VOYG) and Redwire Corp (NYSE:RDW) are among its holdings.
The Biggest Risk Is Still On The Launchpad
The capacity opportunity is compelling, but the replacement capacity is not yet fully operational.
Rocket Lab has more than 100 launches in its backlog, while its much larger Neutron rocket is still awaiting its debut. The company is targeting a first launch in late 2026.
That makes the emerging space ETF trade less about SpaceX losing and more about whether the industry can build enough alternative launch capacity to meet demand.
If Falcon 9 becomes increasingly unavailable to third-party customers, the companies capable of filling that gap, and the ETFs holding them, could become an increasingly important part of the space investment story.
Photo: Ark Invest