Gary Black Says Nasdaq Rule Changes Will Put 'Intense Pressure' On Fund Managers To Participate In SpaceX

Intense Pressure On Managers

The upcoming IPO is expected to create "intense pressure" on managers and professional investors to participate, "even at a valuation north of $1T," because "sitting out may be too risky," Black said in a post on the social media platform X on Tuesday, citing the recent Nasdaq rule changes.

"Fund managers fret that if they sit out the SpaceX offering and the shares soar, their performance will look dismal," he said. He added that Musk and the bankers were "well aware" of this pressure on fund managers as SpaceX gears up to sell a "record $75B worth of stock."

Nasdaq Rule Changes

Nasdaq announced a series of rule changes on Monday after consulting stakeholders in the industry, outlining that the index would include both listed and unlisted shares for calculating a company's market capitalization.

The index also changed the rules around entry into the exchange, sharing that companies with market capitalization equal to any of the top 40 listed enterprises on the index would be allowed a "fast entry" within 15 trading days.

The new rules will take effect on May 1, 2026. Nasdaq also announced the removal of the 10% free-float requirement for companies. The rule changes have been criticized by investor Michael Burry of "The Big Short" fame.

SpaceX IPO

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Photo courtesy: Shutterstock

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.