March 15, 2026 – Once a niche investment theme, the global space economy has matured into a major asset class. Valued at $626 billion in 2025, it is projected to surpass $1 trillion by 2032, according to the Space Foundation. As a result, two new ETFs from Tuttle Capital Management now give retail investors direct access to this fast-growing sector.
A Market Fueled by Defense Spending and Commercial Innovation
Government space budgets hit a record $137.4 billion in 2025, according to Novaspace. Notably, defense spending now accounts for 54% of that total, reaching $73.5 billion globally. Meanwhile, the United States alone invested $77 billion in national security and civil space programs in 2024, per the Space Foundation.
Private-sector activity is accelerating just as quickly. In the first half of 2025, a rocket launched to orbit every 28 hours. Furthermore, SpaceX handled more than half of the world’s 149 launches during that period. As a consequence, the commercial sector now generates 78% of global space revenue.
UFOD: Betting on Government Propulsion Technology
Launched on February 5, 2026, the Tuttle Capital UFO Disclosure ETF (CBOE: UFOD) targets aerospace, defense, and advanced materials companies. Its thesis rests on a provocative idea: government-funded research may have produced propulsion and energy technologies decades ahead of publicly available alternatives.
Holdings include defense giants such as Lockheed Martin and Northrop Grumman. In addition, DuPont features in the portfolio for its materials science capabilities. Currently, the fund carries a 0.99% expense ratio and holds approximately $1.3 million in net assets.
“We’re speculating that the government has technology around propulsion and energy that we haven’t seen yet,” said Matthew Tuttle, CEO of Tuttle Capital Management, in an interview with BNN Bloomberg on March 12, 2026. To support his case, he pointed to historical precedents such as GPS and the internet, both of which originated as government programs.
Space Industry Income Blast: Weekly Dividends from Space Stocks
Tuttle Capital’s second offering targets the commercial space sector directly. Unlike UFOD, this fund holds a concentrated portfolio of just 11 companies. Key holdings include Rocket Lab, Iridium Communications, Globalstar, and AST SpaceMobile.
Importantly, this ETF aims to pay a weekly dividend. Because most space companies do not pay traditional dividends, the fund generates income by writing put options on its holdings. Consequently, this strategy preserves upside exposure while distributing option premium income to shareholders each week.
Why the SpaceX IPO Factor Matters
A potential SpaceX IPO looms large over the space investment landscape. Tuttle described it as “probably the most anticipated IPO we’ve ever seen.” However, he cautioned investors to wait for initial pricing volatility to settle before buying in.
According to MarketsandMarkets, the space propulsion market alone is expected to grow from $10.2 billion in 2024 to $20 billion by 2030. Similarly, SNS Insider projects the broader space economy will reach $779.7 billion by 2033, expanding at a 7.2% compound annual growth rate.
Investor Considerations and Risks
Both funds carry meaningful risk. For instance, UFOD’s thesis depends on speculative government disclosures that may never materialize. On the other hand, the Income Blast’s put-writing strategy exposes shareholders to downside if stock prices fall sharply. Moreover, neither fund has yet gathered significant assets.
Nevertheless, the broader trend is clear. Space investing is maturing from a government-driven sector into a commercially viable category. For investors seeking thematic exposure, these ETFs represent early-stage vehicles in what may become a trillion-dollar market.
Sources:
• Space Foundation, The Space Report 2025 Q2 (spacefoundation.org)
• Novaspace, Government Space Programs 25th Edition, January 2026 (nova.space)
• SNS Insider, Space Economy Market Report, February 2026 (snsinsider.com)
• MarketsandMarkets, Space Propulsion Market Forecast 2024–2030 (marketsandmarkets.com)
• BNN Bloomberg, Interview with Matthew Tuttle, March 12, 2026 (bnnbloomberg.ca)
• Tuttle Capital Management, UFOD Fund Data (thetruthisoutthereufod.com)Market Forecast 2024–2030 (marketsandmarkets.com)
• BNN Bloomberg, Interview with Matthew Tuttle, March 12, 2026 (bnnbloomberg.ca)
• Tuttle Capital Management, UFOD Fund Data (thetruthisoutthereufod.com)
