TODAY EUROPE’S first cannabis exchange-traded fund , the Medical Cannabis and Wellness ETF, dubbed CBSX, launches in Germany. A joint project of Purpose Investments, a Canadian asset manager, and HANetf, a British ETF platform, the fund will invest in listed businesses that grow, make and distribute medical cannabis products. One of the goals of the new venture is to democratise cannabis investments, which have historically been inaccessible or expensive .
Marijuana ETFs have proved popular in America. In 2019 investors poured $729m into US-listed funds . According to Jefferies, a stockbroking firm, the legal cannabis market was worth $11bn globally in 2018, and will grow to at least $50bn by 2029. The enthusiasm is in part a consequence of a global trend towards legalisation: medical cannabis products are now legal in more than 40 countries; a handful of countries have also legalised recreational use of the drug.
And yet anyone betting on cannabis ETFs last year would have seen their money go up in smoke. The world’s largest fund, the US-listed ETFMG’s Alternative Harvest ETF, has lost over half its value since its peak in March 2019. Horizons Marijuana Life Sciences ETF, which is listed on the Toronto Stock Exchange, has fallen by nearly two-thirds . Investors were giddy when Canada, home to many of the world’s biggest cannabis businesses, legalised recreational pot in October 2018.
Still, ETF investors have reasons to hope in dope. Bloomberg reckons that sales in Canada could surge by 35% in 2020, as more shops open and “derivative” products, such as cookies and drinks, hit the shelves. In America, where cannabis is banned at the federal level, at least a half a dozen states will hold referendums on legalising marijuana . Voters seem overwhelmingly favourable.
Optimism will bring yet more ETFs to market. Yet history has shown that, when niche sectors such as robotics or videogames grow popular enough for their own ETFs, it is the first few that grab the lion’s share of investors’ money. So for the newcomers, pot luck may prove elusive.
Ooohhh, this news is from today. Good to see that there are still people alive and working there. 😊💕🎶
ClarkeMicah
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: enews - 🏆 466. / 52 Read more »
Source: THR - 🏆 411. / 53 Read more »
Source: Forbes - 🏆 394. / 53 Read more »
Source: Forbes - 🏆 394. / 53 Read more »
Source: Reuters - 🏆 2. / 97 Read more »