Fundrise Innovation Fund (NYSE: VCX) went from trading near its $18 to $19 net asset value to a peak of $575 a share in less than two weeks after listing on March 19. That move pushed the closed-end fund to a premium of more than 30 times NAV. On March 27, Citron Research released a short report, and the price slid to about $111. The drop from the high exceeded 80%, yet VCX still traded at roughly 5x to 6x its underlying asset value.
The appeal was clear. VCX offered retail investors a way to gain indirect exposure to private AI names that are usually difficult to access, especially for people who do not qualify as accredited investors. Fundrise, known for targeting smaller investors through its platform, built the fund around stakes in high-profile private companies. Its largest positions include Anthropic at 20.7%, Databricks at 17.7%, and OpenAI at 9.9%, along with holdings in SpaceX, Anduril, and Canva.
A thin float drove the premium far beyond fundamentals
The price dislocation was closely tied to how little stock was actually available to trade. Before the NYSE listing, more than 100,000 investors had already bought into the fund through the Fundrise platform, but those early holders were subject to a six-month lock-up and cannot sell until September 2026 at the earliest. That left less than a tenth of total shares circulating in the open market during the early trading period, while fresh demand rushed in from buyers chasing AI exposure.
That imbalance turned the fund into a momentum trade. Discussion in some corners of the market framed VCX as the only legal route to own Anthropic exposure before an IPO. At the top, the implied valuation attached to VCX's Anthropic position had moved well beyond the valuation suggested by Anthropic's latest funding round, making the market price hard to justify on standard financial grounds.
Citron targets SEC as Fundrise pushes back
Citron Research described VCX as “the worst retail exploitation in modern market history.” Its report argued that the fund wrapped itself in the branding of AI unicorns such as Anthropic and OpenAI, drawing in retail demand and inflating the premium far away from intrinsic value. Citron also said the structure left late buyers exposed to steep losses while institutions could exit at more favorable moments, and it called on the U.S. Securities and Exchange Commission to investigate.
On the same day, xStocks and Kraken announced a tokenized version of VCX under the symbol VCXx. According to the report, some market participants believed the launch added to selling pressure and confusion. Fundrise CEO Ben Miller responded on CNBC, calling Citron's report a “PR smear” and defending the long-term value of the fund's AI-related assets.
Even at $111, the premium remains elevated
The collapse from $575 to $111 erased much of the spike, but it did not eliminate the distortion. With NAV still around $18 to $19, the fund remains far above the value of its underlying holdings. If VCX were to trade back in line with NAV, the downside from current levels would still be severe.
The episode shows how quickly a closed-end structure, limited float, and AI hype can combine into an extreme premium. What happens next may depend in part on whether the SEC responds to Citron's request for scrutiny.