A new fund designed to give retail investors a way to buy into private companies like SpaceX has seen huge demand in its first few weeks, creating a massive premium for the fund and confusion on a popular brokerage app. The Destiny Tech100 is a closed-end fund that trades on New York Stock Exchange under the ticker "DXYZ." In less than a month of trading, the fund has already seen massive price swings in both directions, even though its underlying valuation has been effectively static.
mountain The Destiny Tech 100 fund has seen big swings and is trading well above its net asset value. The premium is notable not only for its size but also because closed-end funds often trade a discount to NAV. "It's common for them to not trade exactly at their NAV, but trading at a premium is very strange. Because if you're doing that, you're effectively saying you don't believe in the NAV," said Jack Shannon, senior manager research analyst for Morningstar.