Virgin Galactic Jumps on ARK Investments' Space ETF Plans

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Virgin Galactic  (SPCE) - Get Report shares are taking off after well-known exchange-traded fund provider ARK Investments filed to launch a space exploration ETF.

Virgin Galactic shares surged more than 12% in premarket trading on Thursday after ARK Investment Management filed with the Securities and Exchange Commission to launch a space exploration exchange-traded fund.

While ARK didn't identify which companies it will hold in the space exploration-focused fund, expectations are that Virgin Galactic would be one of the fund’s holdings.

According to the filing, ARK’s actively managed ETF will invest 80% in stocks engaged in the investment theme of space exploration and innovation, defined as “leading, enabling or benefitting from technologically enabled products and/or services that occur beyond the surface of the Earth.”

Other space-exploration companies also gained on Thursday following ARK’s filing, including New Providence Acquisition and Stable Road Acquisition, two special-purpose acquisition vehicle companies also focused on beyond-Earth endeavors.

To be sure, Virgin Galactic is far from being on a profitable trajectory. The Las Cruces, N.M.-based company founded and partly owned by Richard Branson suffered a miss last month when a test flight was abandoned because of a technical problem.

It also revealed in a regulatory filing last month that shareholders may sell up to 112,964,840 of Virgin Galactic, the proceeds of which would not remain with the company.

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