Add the butter to a large stock pot set over medium low heat. Once the butter has melted, stir in the vanilla extract (it will spatter), then add the marshmallows and cook, stirring, until smooth, about 5 minutes. Stir in the popcorn and 1/4 cup of sprinkles until the popcorn is well coated, then immediately pour the mixture into the prepared baking dish pressing it firmly into an even layer. Sprinkle the remaining 1/4 cup of sprinkles on top.