Two ETFs offer exposure to Anthropic before its IPO, Barron's says

what happened

Investors who do not want to wait for Anthropic's public listing can gain indirect exposure through funds, Barron's reports. The AI company's stock could start trading shortly before Thanksgiving in what is expected to be a record IPO. Tom Essaye, editor of the Sevens Report, notes that only a small share of investors usually gets access to IPO allocations.

The article highlights the Corgi MANGOS ETF, with about 9% of its assets in Anthropic through derivatives and special purpose vehicles, and an expense ratio of 0.2%. The fund is heavily concentrated in six companies and has fallen about 10% since its early October launch. The Tema Photonics & Optical ETF holds 10.5% in Anthropic based on a $1.4 trillion valuation, charges 0.75% and is down about 27% since its June 29 inception.

Pricier options include the Fundrise Innovation Fund at 1.85%, the Destiny Tech100 at 2.5% and the ARK Venture Fund at 2.9%. None of these funds offer direct shares of Anthropic common stock, and ETFs can trade at premiums or discounts to the value of their underlying stakes.

why it matters

For markets, the story points to strong demand for pre-IPO exposure ahead of a major listing, but such funds can trade away from the value of their holdings, and new listings are often volatile.

market impact

AI and tech funds: demand for pre-IPO exposure through ETFs ahead of the Anthropic listing

tags

instruments