On Friday, Defiance ETFs launched the Defiance Next Gen Altered Experience ETF ($PSY), the first psychedelic ETF to be listed in the U.S. $PSY will give investors exposure to companies involved in the development of the next generation of medicine, including psychedelics, cannabis, and other psychedelic-derived treatments.
Mental illnesses are on the rise, and existing medications have been found wanting. A staggering 30% of depression patients do not respond to any currently available treatment. Research budgets for psychiatric medicine in large companies have fallen by 70% in 10 years, as confidence wanes that more investment in the same direction will produce improved results.
Recent breakthrough studies in the medical re-purposing of psychedelics and ketamine have found significant benefits to sufferers of anxiety, PTSD, OCD, eating disorders, depression, and more. Declared a “breakthrough therapy” by the FDA in 2018 and 2019, studies on the use of psilocybin have found rapid, marked, and enduring anti-anxiety and depression effects.
As mentioned, $PSY is the first U.S.-listed psychedelic ETF. It seeks to track the BITA Medical Psychedelics, Cannabis, and Ketamine Index, a rules-based index that tracks the performance of companies listed in North American Exchanges that operate business models focused on the usage of Psychedelics, Medical Cannabis, and Ketamine for medicinal and health treatment purposes. It is a weighted, rules-based index that can mitigate the risk of over-exposure to any single company.
Companies included in the index must have a minimum market capitalization of $75 million and operate in the production, distribution, or services related to medical psychedelics, medical cannabis, or ketamine and their derivatives.
As explained by Defiance, psychedelics are a non-addictive, short-term intervention with minimal side effects, which could dramatically improve mental health. Psychedelics also promote neural plasticity, which essentially allows the brain to rewire itself.
Additionally, as psilocybin, LSD, and their derivatives become an integral part of the multi-billion dollar global medicine market, there’s growth potential, offering hope to many whose conditions seem untreatable in current paradigms. Plus, when it comes to marijuana, PSY also offers exposure to companies leading the medical re-purposing of cannabis to treat chronic pain, symptoms of MS, and side effects of chemotherapy, among others.
Founded in 2018, Defiance is a FinTech asset manager, and an ETF sponsor focused on the next generation of investors. The Psychedelic ETF ($PSY) joins Defiance’s suite of first-mover disruptive ETFs, which includes the Next Gen H2 ($HDRO), the first SPAC ETF ($SPAK), and the first 5G ETF ($FIVG).
For more information, visit www.defianceetfs.com/psy.