I believe this is a phenomenon of 2020’s cheap liquidity and capital hunting for yield. In a SPAC, the timeframe before the deSPAC happens earns and interest and early investors in the SPAC also receive warrants which are basically free equity options on the subsequently merger. It almost becomes risk free if you are backing a relatively well known team (of course share price will fluctuate before deSPAC and that it that risk).
Whether this will continue, will depend on whether we have any market incidents where SPACs acquired bad assets or share price performs poorly after deSPAC. Case in point is Nikola which is an electric truck company. So far that one scandal has not led to a loss of interest in SPACs yet. But I believe it is a matter of time since there are more than 200 listed last year, there surely will be dud assets or some market accident at some point. Some SPAC teams are not even professional investors (sport stars, celebrities etc)
