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ERShares ETF Exceeds Liquidity Limits with SpaceX Stake

3/7/2026

Summary

Story summary

The ERShares Private-Public Crossover ETF (XOVR) allocated over 37% of its assets to SpaceX, exceeding the SEC illiquidity limit of 15%.
XOVR's SpaceX stake, valued at $205 million, has drawn scrutiny over valuation methods and liquidity risk during market stress.
The Baron First Principles ETF (RONB) also exceeded illiquidity thresholds but classified its holdings differently.
Despite investor interest, XOVR has faced outflows and added risk disclosures in its prospectus.

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Story summary

The ERShares Private-Public Crossover ETF (XOVR) allocated over 37% of its assets to SpaceX, exceeding the SEC illiquidity limit of 15%.
XOVR's SpaceX stake, valued at $205 million, has drawn scrutiny over valuation methods and liquidity risk during market stress.
The Baron First Principles ETF (RONB) also exceeded illiquidity thresholds but classified its holdings differently.
Despite investor interest, XOVR has faced outflows and added risk disclosures in its prospectus.