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Moving Markets

Cannabis ETFs on a Roller Coaster Ride

Discover how cannabis ETFs like MSOS and MJ are weathering a tumultuous week amidst rumors of marijuana reclassification by the DEA, impacting the industry's landscape.

ETF Central
By ETF Central Team · May 6, 2024
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Cannabis ETFs on a Roller Coaster Ride

The cannabis industry experienced a whirlwind week, marked by extreme volatility in cannabis funds. A prime example is the AdvisorShares Pure US Cannabis ETF

which witnessed a significant drop of 13.07% on Monday, followed by a rebound of 9.46% on Tuesday, to end the week with a gain of 10.29% over the week.

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The Catalyst Behind the Turbulence

Driving this volatile week is the buzz around the potential reclassification of marijuana by the Drug Enforcement Administration (DEA). This speculation was fueled further when the Associated Press revealed that the DEA plans to categorize cannabis as a substance, posing a lesser danger.

Implications of the Reclassification

Though the proposal awaits scrutiny from the White House Office of Management and Budget, its implications are far-reaching. Reclassification would pave the way for many opportunities within the cannabis industry, without altering its legal status for recreational use.

Cannabis & Psychedelics Theme Shows Resilience

Considering these developments, the Cannabis & Psychedelics segment emerged as the standout, posting a gain of 10.04% over the week and clinching the title of the best-performing theme. Notably, both the AdvisorShares Pure US Cannabis ETF

and the Amplify Alternative Harvest ETF
MJ
-2.5%
mirrored this upward trend, recording impressive gains of 10.29% and 9.87% respectively.

Group Data

Funds Specific Data: MSOS, MJ, MJUS

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.

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