NEW YORK — June 5, 2026
Executive Summary
ERShares has announced a shareholder protection plan for the ERShares Private-Public Crossover ETF (XOVR) ahead of the anticipated SpaceX IPO. The initiative is designed to help protect long-term shareholders and retail investors from potentially disruptive short-term trading activity surrounding the IPO event. According to ERShares, XOVR shareholders have already benefited from approximately $50 million in unrealized appreciation reflected in the Fund’s net asset value through its SpaceX exposure. The plan introduces measures intended to support shareholder value preservation, mitigate liquidity pressures, and promote fair treatment of long-term investors.
Announcement Overview
ERShares stated that XOVR has implemented a shareholder protection plan designed to address risks that may arise before and after the SpaceX IPO. The Fund expects to utilize tools outlined in its prospectus and prospectus supplement, including the rejection of certain creation orders that could adversely affect the Fund or its beneficial owners. Beginning on the day of the SpaceX IPO, a variable redemption/transaction fee of up to 2% may be imposed on qualifying redemptions. The company stated that these measures are intended to help reduce potential dilution, transaction costs, and liquidity pressures while preserving value generated through XOVR’s long-term investment strategy and SpaceX exposure.
Key Announcement Details
- Announcement Type: Shareholder Protection Plan
- Company: ERShares
- Fund: ERShares Private-Public Crossover ETF (XOVR)
- Ticker Symbol: XOVR
- Announcement Date: June 5, 2026
- Primary Objective: Help protect long-term shareholders and retail investors ahead of the SpaceX IPO
- SpaceX Exposure: Held indirectly through a special purpose vehicle
- Unrealized Appreciation: Approximately $50 million reflected in the Fund’s net asset value from SpaceX exposure
- Protection Measure 1: Rejection of certain Creation Unit orders that may adversely affect the Fund or its beneficial owners
- Protection Measure 1 Status: Already in effect
- Protection Measure 2: Variable redemption/transaction fee payable to the Fund
- Maximum Redemption Fee: Up to 2% of the value of applicable Creation Units
- Redemption Fee Effective Date: Beginning on the day of the SpaceX IPO
- Target Risk Factors: Short-term trading activity, liquidity pressure, transaction costs, and potential shareholder dilution
- Investment Framework: ERShares VC Lens
- Investment Horizon: Long-term
- Fund Structure: Private-public crossover ETF
- Fund Distinction: First ETF to pioneer the private-public crossover structure
- Portfolio Focus: Publicly traded growth equities and select private-company exposure
- Shareholder Focus: Long-term investors and retail shareholders
- Secondary Market Impact Disclosure: Trading prices may experience discounts to NAV or other significant price impacts beginning on the day of the SpaceX IPO
- Prospectus Reference: Fund prospectus and June 4, 2026 prospectus supplement
- Leadership Commentary: Joel Shulman, Chief Executive Officer and Chief Investment Officer, ERShares
- Company Focus: Innovation, growth, and private-public market investing
Key Highlights
- Approximately $50 million in unrealized appreciation from SpaceX exposure has been reflected in the Fund’s net asset value.
- XOVR has instituted a shareholder protection plan ahead of the SpaceX IPO.
- The plan is intended to help protect long-term shareholders and retail investors from disruptive short-term trading activity.
- The Fund expects to utilize measures described in its prospectus and prospectus supplement.
- The ability to reject certain Creation Units that may adversely affect the Fund has already gone into effect.
- A variable redemption/transaction fee of up to 2% may be imposed beginning on the day of the SpaceX IPO.
- XOVR was the first ETF to pioneer the private-public crossover structure.
- The Fund applies ERShares’ VC Lens investment framework with a long-term investment horizon.
- SpaceX remains a long-term conviction holding for the Fund and is accessed indirectly through a special purpose vehicle.
XOVR Institutes Shareholder Protection Plan Ahead of the SpaceX IPO
ERShares announced that the ERShares Private-Public Crossover ETF (XOVR) has instituted a shareholder protection plan ahead of the anticipated SpaceX IPO.
According to the company, the initiative is designed to help protect long-term shareholders and retail investors from market activity that could emerge around a major public offering event. ERShares stated that significant subscription and redemption activity associated with high-profile IPOs can create transaction costs, liquidity pressures, and potential value dilution for existing shareholders.
The company noted that XOVR’s SpaceX position has recently contributed approximately $50 million in unrealized appreciation reflected in the Fund’s net asset value. ERShares stated that the protection plan is intended to help preserve that value for investors who participated in the Fund’s investment strategy prior to the IPO event.
SpaceX Exposure and Long-Term Investment Approach
ERShares stated that SpaceX is a long-term conviction holding within XOVR and forms part of the Fund’s broader private-public crossover investment strategy.
The company noted that XOVR was the first ETF to pioneer a structure that combines:
- Publicly traded growth equities
- Select private-company exposure
- Long-term innovation-focused investing
- Public and private market participation within a single ETF
According to ERShares, the Fund applies its proprietary VC Lens investment framework, which focuses on identifying companies with category leadership, scalable growth opportunities, and long-term value creation potential.
The company further stated that XOVR’s SpaceX exposure is obtained indirectly through a special purpose vehicle and continues to be viewed as a strategic long-term holding within the portfolio.
CEO Commentary
Joel Shulman, Chief Executive Officer and Chief Investment Officer of ERShares, commented on the Fund’s investment philosophy and the rationale behind the shareholder protection plan.
“We invest with a long-term horizon, applying a VC Lens similar to how venture capital investors evaluate category-defining companies before broader public-market recognition. SpaceX is a long-term conviction holding for XOVR, and as the IPO approaches, our priority is simple: protect long-term shareholders from short-term flows that may create unnecessary costs or potential dilution.”
Shulman stated that the Fund’s approach remains centered on long-term investing and value preservation for existing shareholders.
Why the Shareholder Protection Plan Was Introduced
ERShares stated that ETFs holding pre-IPO securities have historically experienced significant inflows and outflows immediately before and after major IPO events.
According to the company, such activity may result in:
- Higher transaction costs
- Liquidity pressures
- Potential shareholder dilution
- Market inefficiencies
- Additional operational costs
- Impacts on existing shareholders
The company indicated that these risks may be more relevant when a fund maintains exposure to private or less liquid investments.
ERShares stated that the newly announced measures are intended to address these considerations while supporting long-term shareholder interests.
Measures Being Implemented by XOVR
According to ERShares, the Fund expects to implement measures that are consistent with its prospectus and its June 4, 2026 prospectus supplement.
Creation Order Restrictions
ERShares stated that, beginning immediately and continuing until the day of the SpaceX IPO, the Fund or its distributor expects to exercise its right to reject certain large creation orders.
The company indicated that this authority may be used when acceptance of an order could:
- Adversely affect the Fund
- Adversely affect beneficial owners
- Create operational challenges
- Increase potential dilution risks
ERShares stated that this measure has already gone into effect.
Variable Redemption and Transaction Fee
The company further stated that beginning on the day of the SpaceX IPO, a variable redemption/transaction fee payable directly to the Fund may be imposed on qualifying redemptions.
Key details include:
- Maximum fee: Up to 2%
- Applies to: Creation Unit redemptions
- Effective timing: Beginning on the day of the SpaceX IPO
- Purpose: Mitigate costs associated with significant redemption activity
ERShares stated that the fee is intended to help protect existing shareholders and support orderly fund operations during a potentially significant market event.
Impact on Secondary Market Trading
ERShares noted that creation and redemption processes apply to investors purchasing or redeeming Creation Units and do not directly apply to investors trading shares in the secondary market.
However, the company stated that the effects of those processes may influence secondary-market activity.
Potential impacts identified by ERShares include:
- Discounts relative to net asset value (NAV)
- Significant secondary-market price movements
- Market pricing impacts beginning on the day of the SpaceX IPO
The company encouraged investors to review available fund disclosures, FAQs, and prospectus materials for additional information regarding these mechanisms.
Additional Commentary From ERShares
Joel Shulman, Chief Executive Officer and Chief Investment Officer of ERShares, said the measures are intended to support equitable treatment of shareholders during a significant market event.
“Retail investors should not be disadvantaged by large, short-term trading flows around a major IPO event. These actions are intended to help protect shareholders, support fair treatment, and preserve value created through XOVR’s long-term exposure to private and public innovation leaders.”
ERShares stated that the shareholder protection plan is designed to align with the Fund’s long-term investment philosophy while supporting existing shareholders as the anticipated IPO approaches.
Important Disclosures
ERShares stated that investors should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing.
According to the company, detailed information regarding the Fund is available through the prospectus and related disclosure materials. Investors are encouraged to review these materials carefully before making investment decisions.
Additional disclosures are available through ERShares’ published investor resources.
About XOVR
XOVR, the ERShares Private-Public Crossover ETF, combines publicly traded growth companies with select private-company exposure within a single ETF structure.
According to ERShares, the Fund:
- Applies the firm’s VC Lens investment framework
- Focuses on long-term innovation investing
- Targets category-defining companies
- Provides exposure across public and private markets
- Maintains a long-term investment horizon
ERShares stated that SpaceX remains one of the Fund’s long-term conviction holdings.
About ERShares
ERShares is an asset management firm focused on innovation investing, growth investing, and private-public market strategies.
The firm applies its VC Lens investment framework to identify companies demonstrating:
- Category leadership
- Scalable growth potential
- Long-term value creation opportunities
- Innovation-driven business models
ERShares invests across public and private markets and focuses on opportunities aligned with long-term growth and innovation themes.
Media Contact
For additional information, visit entrepreneurshares.com.
Source Attribution
Source: Company announcement
