SPACs have traveled a rocky road from Wall Street darling to cautionary tale and back again. After the intense activity of 2020–2021 and the subsequent downturn, the market has entered a new phase marked by stronger regulatory standards and more disciplined deal-making. With $30.4 billion raised in 2025 and meaningful regulatory reforms in place, SPACs are staging a comeback, this time built on fundamentals rather than hype. What changed? And more importantly, can this recovery last? This post examines the forces reshaping the SPAC landscape and what investors should watch as the market enters its next chapter.