ARK Invest bought nearly 3.3 million shares of SpaceX (SPCX) as Elon Musk's company went public in the largest IPO ever on Friday, building a stake worth more than $500 million by the end of the day.

The shares, priced at $135 for the sale, closed at $160.95, rising more than 19.2% on their first day.

The Cathie Wood-owned firm liquidated almost $280 million of stock in the week before the listing, then sold another roughly 948,000 shares across 13 companies worth at least $48 million on Friday, including Advanced Micro Devices ( AMD ), Roku ( ROKU ) and Baidu ( BIDU ), according to daily emailed statements over the period.

The ARK Innovation ETF ( ARKK ) did the bulk of the buying, ending the day with SpaceX at 3.28% of its portfolio.

A first-day pop of almost 20% on the largest IPO in history signals institutions are paying up for high-beta innovation risk again. While bitcoin is the highest-beta asset in the group, the hottest trade in the market is now a wave of AI and space listings, with OpenAI and Anthropic also filing to go public.

There is a finite amount of risk capital, and when even a bitcoin bull like Wood is rotating toward it rather than adding to crypto, it's a sign that funds are likely to continue being sucked out of the crypto markets in the near term.

An ARK model targets a $2.5 trillion enterprise value for SpaceX in 2030, with a bull case near $3.1 trillion, built off the company's $350 billion private valuation in 2024.

ARK also runs a spot bitcoin ETF, and Wood has been among the most vocal institutional bitcoin bulls, with long-term price targets running into seven figures.