Shares of Fundrise Innovation Fund LLC (VCX) soared 23.83% during intraday trading on Wednesday, continuing a period of extreme volatility for the recently listed fund.

The dramatic price increase is driven by intense retail investor demand for exposure to high-profile private technology companies like SpaceX, OpenAI, and Anthropic before their anticipated initial public offerings. With the majority of the fund's shares subject to a lockup agreement, investors are bidding up the limited available supply, pushing the fund's market capitalization far beyond the estimated net asset value of its underlying holdings.

Analysts note that the trading frenzy reflects a bet that these sought-after startups will command even higher valuations once they go public, with SpaceX potentially laying the groundwork for future listings of AI leaders. However, some caution that the current premium represents a significant disconnect from fundamentals and may prove unsustainable.