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Two SPAC ETFs Close in One Month, Suggesting End to Wall Street Boom

  • Fed tightening policy has squashed SPAC frenzy, stock prices
  • SPAC ETFs from Defiance, Morgan Creek traded less than 2 years

Little noticed in the annual August market slowdown were two fund closures that may signal an end to one of Wall Street’s hottest manias of the past few years: SPACs. 

The Defiance Next Gen SPAC Derived ETF and the Morgan Creek - Exos SPAC Originated ETF shuttered last month, after struggling to maintain traction as the Federal Reserve’s monetary tightening weighs on risk assets and drains liquidity from a market once free-flowing with capital searching for a home.