'Passive' investors who dodged bitcoin are now forced to own SpaceX shares three times more volatile

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In many ways, Space X is a lot like bitcoin: it has no earnings, no yield, is so far extremely volatile, and has about as many haters as it does hardcore believers. One big difference: no one's forcing you to own bitcoin.In the case of Space X, it sure feels like the opposite for many advisors and money-managers invested in index funds who will soon be owners of Elon Musk's astronomic ambitions when the stock is integrated this summer into some of the biggest exchange-traded-funds that are staples of most American's portfolios."Vanguard and other large money managers who are going along with Nasdaq's mandate and rule change are betraying U.S. savers," said Ayman Saidi, partner at Strategic Investment Solutions, an Orland Park, Illinois-based RIA. "VUG in my portfolios will likely own SpaceX soon. This is why I like Dimensional Funds: they do not simply copy an index. It will be a major market distortion."

'VUG' is the Vanguard Growth Index Fund ETF.CRSP market indexes, Nasdaq, FTSE Russell, and MSCI have all made accommodations to integrate SpaceX within their large-cap trackers. Given SpaceX's monstrous $2.7 trillion market cap – the fifth biggest company in the world after Tuesday's 4.5% rally – it's likely to raise index-level volatility.SpaceX implied volatility was almost 120 Tuesday, about three times higher than the iShares bitcoin ETF (IBIT). The stock would be the most volatile in the S&P 500 and Nasdaq 100 as of Tuesday's trading – as well as the only trillion-dollar-plus market-cap company that doesn't make money.