DXYZ surges 1000% then pulls back: Opportunity or Trap? 📈🤔
On April 8, within 9 days of listing, the Year-To-Date (YTD) performance of $Destiny Tech100 Inc(DXYZ)$ reached over 1100%, then, on April 9, DXYZ fell 35%.
What drives $Destiny Tech100 Inc(DXYZ)$?
DXYZ is a closed-end fund representing a diverse portfolio of securities, distinct from traditional mutual funds or ETFs.
An intricately detailed HD image capturing the dramatic ascend of a metaphorical rocket symbolizing the Destiny Tech100 Fund. The rocket is skyward-bound in a clear, blue expanse showcasing its strategic tech investments. The atmosphere around the rocket is buzzing with transparent holograms of various trending technology icons, depicting blockchain, AI, quantum computing, and biotech innovations. The view below reveals a vibrant cityscape brimming with tall buildings, satellite towers, and green spaces denoting a thriving tech industry.
Established on November 18, 2020, as a Maryland corporation, DXYZ began operations on January 25, 2021. It registered with the Securities and Exchange Commission on May 13, 2022, under the Investment Company Act of 1940.
DXYZ aims to hold shares of 100 pre-IPO companies, though it currently holds only about a quarter of that number. Notably, it holds significant shares of SPACE X and various technology and artificial intelligence companies, as per the DXYZ Tech100 Inc annual shareholder report 2023.
Read full annual report to know the current holding companies
Seems it is a great way that ordinary investors can buy $Destiny Tech100 Inc(DXYZ)$ to invest in OpenAI and SpaceX.
How much potential growth does DXYZ have?
Perhaps what makes DXYZ appealing is the nature of private equity investment itself. Traditional equity investments emphasize diversification to spread risk, and if you spread your risk across over 100 companies, only a few companies might need to scale up enough to offset any failures among the group's other companies.
The DXYZ website claims that "many pre-IPO companies indeed have the potential to deliver returns of 10 to 50 times."
Currently, the market value of $Destiny Tech100 Inc(DXYZ)$ has reached around $1 billion. However, trading has been extremely volatile, reminiscent of the stock frenzy of 2021. Wednesday, trading was halted at least four times within the first 30 minutes of the market opening.
Considering Wednesday's pullback,
Do you see the volatility of $Destiny Tech100 Inc(DXYZ)$ as an investment opportunity or too risky?
What is your investment strategy for $Destiny Tech100 Inc(DXYZ)$ ?
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- highhand·04-11I only know Destiny's Child. This destiny fund very volatile because companies not profitable. now interest rates so high, better be more cautious to invest in these IPO companies....LikeReport