A new ETF will let investors participate in the stock market's $22 billion SPAC craze
Brendan McDermid/Reuters
- Investors may soon be able to access the growing hype around SPAC offerings with the launch of a new exchange-traded fund.
- The Defiance NextGen SPAC IPO ETF plans to be the first such instrument tracking the newly popular offerings, according to a Friday SEC filing.
- More than $22.5 billion has been raised over 55 SPAC offerings in 2020 so far, according to SPACInsider.com. The fundraising sum has already eclipsed last year's total.
- If the ETF comes to market, it will boast an 80% concentration in SPAC-derived IPO offerings. The rest of the ETF would invest in IPO companies themselves.
- Visit the Business Insider homepage for more stories.
Investors looking to hop on Wall Street's blank-check bandwagon may soon have a new option.
The surging popularity of special-purpose acquisition companies, or SPACs, has exchange-traded fund providers rushing to capitalize on the trend. The Defiance NextGen SPAC IPO ETF could be the first to do so. The instrument plans to track shares of companies taken public through SPAC mergers as opposed to traditional IPOs, according to a Friday filing with the Securities and Exchange Commission.See the rest of the story at Business Insider
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