January 28, 2022

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Commercial spaceflight has opened the era of space tourism and also brought new investment opportunities

Commercial spaceflight has opened the era of space tourism and also brought new investment opportunities

Humans have been flying into space for decades. However, commercial flights did not begin until 2021. Virgin Galactic’s VSS Unity spacecraft became the first to pioneer space tourism. The crew had two pilots, three employees of the company and its founder, 70-year-old billionaire Richard Branson. They stayed in the universe for only a few minutes, enjoying the state of weightlessness and sending greetings to Earth via a live broadcast from the ship’s cabin.

Photo: shutterstock

Virgin Galactic s Richardom Branson

The company’s first commercial flights are scheduled to begin in early 2022. Richard Branson’s Virgin Galactic VSS Unity is designed to accommodate up to six passengers with two pilots. The company has about 600 reservations for future tripsIt sells for between $200,000 and a quarter of a million dollars. The final price of airline tickets should be between 400 and 500 thousand dollars. This year’s trip was of symbolic importance, especially for building consumer confidence in space tourism.

Blue Origin with Jeff Bezos

Another crewed flight was made on July 20, 2021 by Blue Origin On board with founder Jeff Bezos. Even his New Shepard rocket and crew of four landed safely without major problems and passed the edge of Earth’s atmosphere. The Blue Origin space ticket should cost more than $500,000. Alongside Bezos was his brother, 82-year-old Wally Funk, and 18-year-old physics student Oliver Dayman, whose father sold an auction ticket for nearly $26 million.

SpaceX Elonum Moscow

Elon Musk closed the trio of astronauts He is also planning commercial space flights with his company, SpaceX. However, it shouldn’t just be an adventurous trip to the subtropical frontier of space, where passengers wake up in weightlessness for a few minutes and enjoy the views.

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SpaceX is planning orbital flights and speeding up passenger transportation around the planet. The journey from London to New York today takes approximately 8 hours by commercial airline. If spaceflight is used, the transfer time can be reduced to 30 minutes due to the lack of air resistance in space and thus increase the overall speed.

Promising market in space

UBS estimates in its report last yearthat space tourism, whether sub-tropical or orbital, To reach a potential market value of $3 billion by 2030. An important part of the space revenue will be the growth of satellites in Earth’s orbit. There are currently 6000 satellites in orbit, of which 2,500 are in continuous operation and the rest travel through space as obsolete, non-functional waste.

More than 60% of functional ones are used today for communication and information transmission. About 20% is used for weather tracking and 20% for military purposes, border tracking and GPS location. In the future, it is planned to transmit the Internet via satellites in orbit, which presents a huge potential. So the space sector may accelerate in the coming years. By 2028, the number of active satellites should increase by more than 300% to nearly 10,000.

Investment Opportunities for Space Business Through ETF

According to Across Private Investments, investors can participate in companies operating in the space through ETF called UFO. This fund includes companies whose revenue from the space business is between 5-20% of current revenue. The good news is that companies are not only focusing on this sector, they also see the future in it. Major companies in this fund include Virgin Galactic (7%), ORBCOMM (6%), Maxar Technologies (5%), SES (5%), Trimble (5%), Garmin (5%) and many others.

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The second alternative is the ETF from ARK Investment – ARK for space exploration and innovation. The fund is actively managed and positions are selected by the fund manager. She holds more than 40 positions, including Trimble (9.8%), ETF 3D printing (6.9%), Kratos Defense (6.3%), Iridium Communications (6.2%) and others. This fund was created only in March of this year.