Cypto investor 1RT weighs the SPAC path
Growth-stage crypto investor 1RoundTable Partners is weighing the creation of SPACs to take some of its associated companies public, managing partner Dan Tapiero tells Axios.
Why it matters: Crypto and SPACs have been under intense scrutiny, with the crossover of the two universes becoming a recipe for rejection in the regulatory books.
Yes, but: Recent regulatory wins in crypto — including the approval of the Spot Bitcoin ETFs — has helped rekindle Tapiero's optimism for the product.
Details: "I'm hoping that the fact that the ETF just passed is a good sign for us," says Tapiero, who says the firm will probably decide this year whether to pull the SPAC trigger.
- Tapiero sees crypto infrastructure companies — those that don't directly touch the buying and selling of the asset — as facing fewer regulatory hurdles.
Background: Stock-trading company Apex Fintech originally planned to go public in a 2021 SPAC merger but struggled to complete the deal due to concerns from the SEC over its crypto business.
- It later sold that business to Bakkt and recently filed confidentially for an IPO.
- Other crypto companies — including Bullish, eToro, and Circle — also pulled their SPACs following a long review period.
- Last year, Tapiero formed 1RT with some 10T employees as well as new roster partners, including Dubilier & Co. founder Michael Dubilier.
- 10T is backed by Alan Howard. Its other investments include Gemini, Figure, and Kraken.
- Tapiero has not yet notched an exit at the two firms, though he has come close with portfolio companies Circle and eToro.
What they're saying: Tapiero notes that 1RT has investors familiar with the SPAC process in its roster. Partner Tad Smith, former Sotheby's CEO, was a Capitol Investment Corp. V. board member.
Bottom line: Crypto companies are eyeing the exit again.