Investors are declining to one of the most popular bets on Wall Street, as the new regulatory inquiry into special-purpose acquisitions slows the flow of new spending down a bit as stock prices tumble.
SPACs have raised about $ 100 billion so far this year, more than last year’s record of $ 83.4 billion, which was more than the amount raised in the nearly thirty-year history of these blank check companies.
The market reached a record high again on Tuesday, when Grab Holdings Inc., the South Asian group, food delivery and digital wallets, said it would appear via a SPAC deal at a valuation of nearly $ 40 billion.
Critical comments from regulators seem to deter some investors and new offers. Until last month, approximately five new SPACs entered the stock market every evening in 2021. Over the past 14 days, 12 new SPACs have started trading, according to data from SPAC Research.
The slowdown comes because other assets such as stocks and cryptocurrencies are on or near records. SPACs have been one of the worst performers on the market lately.