The Destiny Tech100 (NYSE:DXYZ) fund, a recently launched closed-end fund, has seen an extraordinary surge in its stock price, rising by as much as 558% within a fortnight.

What Happened: The fund, which was listed on the New York Stock Exchange on March 26, has witnessed a meteoric rise, propelling its market value to $644 million.

The fund focuses on investing in private high-growth tech companies, a market segment typically inaccessible to most investors.

The fund currently holds stakes in 23 companies and aims to eventually include 100 companies in its portfolio.

Despite the steep management fee of 2.5%, the fund offers investors the opportunity to gain exposure to private companies that have the potential to generate significant returns before going public.

Notably, the fund's largest position is in Elon Musk's SpaceX, with a 34.6% stake. Other significant holdings include Epic Games at 4%, OpenAI at 3.8%, and Chime at 1.9%.

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Why It Matters: The rapid ascent of the Destiny Tech100 fund is indicative of the growing interest in private tech companies.

This trend is further underscored by the significant valuations of companies like SpaceX and OpenAI.

As of December, SpaceX was valued at $180 billion, while OpenAI was in talks to raise funds at a $100 billion valuation.

This surge in private tech company investments aligns with the predictions of analysts like Wedbush's Dan Ives, who believes that the AI revolution and improving ad spending will be the catalyst for a 15% rally in tech stocks in 2024.

Price Action: Destiny Tech100's shares closed 76.51% up on Friday at $59.20, according to Benzinga Pro.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo courtesy: SpaceX