Already hot cannabis exchange traded funds, such as the AdvisorShares Pure US Cannabis ETF (MSOS), may be getting more political support courtesy of New York Governor Andrew Cuomo.
On Monday, Cuomo said via Twitter that the Empire State will legalize adult recreational marijuana, becoming the 16th state to do so.
Cannabis sector-related exchange traded funds have been climbing on expectations that the favorable election results could push the country toward legalizing sales of recreational marijuana. The recent Georgia senate results come after state-level marijuana propositions went undefeated on Election Day.
The actively managed MSOS ETF is the first of its kind to deliver exposure dedicated solely to American cannabis companies, including multi-state operators (MSOs). MSOs are U.S. companies directly involved in the legal production and distribution of cannabis in states where approved.
Cannabis Companies Like Rebelle Are Ready to Pounce
“From the start, Rebelle has been about promoting growth in communities that have been disproportionately impacted by the criminalization of cannabis,” said Marcus Williams, Vice President of Rebelle. “It is our hope that Governor Cuomo is serious about working with legislators to pass legislation that legalizes cannabis and dismantles the legacies of the War on Drugs. In addition to increasing revenue and allowing for more resources to be dedicated to communities disproportionately impacted by the War on Drugs, we hope that lawmakers also work to ensure the industry provides opportunities and prosperity to New Yorkers of color.”
MSOS seeks long-term capital appreciation by investing entirely in legal, domestic cannabis equity securities. MSOS’ domestic equity strategy allows this active ETF to allocate its underlying portfolio among multi-state operator (MSO) companies as well as other U.S.-based cannabis-focused areas such as REITs.
The global cannabis market is expected to grow to $630 billion by 2040, compared to just $12 billion today. The cannabis industry is expected to expand into a $22 billion hemp-derived CBD product market in 2022, up from $591 million in 2018. Looking ahead, Canada’s cannabis industry is projected to grow six-fold in market value by 2026, up from $1.6 billion in 2018.
Rebelle CEO Charlotte Hanna added that “in addition to looking to representatives from states where the adult-use of cannabis has been legalized, we also believe that lawmakers should be reaching out to members of the industry, particularly figures from Minority- and Women-Owned Business Enterprises. New York has the potential to create a truly equitable marketplace, one that borrows from and improves upon the models pioneered by states like Massachusetts.”
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.