The ETFMG Alternative Harvest ETF (NYSEArca: MJ) rallied 1.73 percent on Tuesday after New Jersey politicians revealed plans to legalize the recreational use of marijuana in the state.
Democratic Governor Phil Murphy announced a bill that would allow for the adult-use of marijuana as well as allow municipalities that are home to a cultivator or manufacturer to collect the revenue from a 2 percent tax on the product within their jurisdiction.
“Legalizing adult-use marijuana is a monumental step to reducing disparities in our criminal justice system,” Murphy said in a press release. “After months of hard work and thoughtful negotiations, I’m thrilled to announce an agreement with my partners in the Legislature on the broad outlines of adult-use marijuana legislation.”
By the middle of Tuesday’s trading session, nine of MJ’s top 10 holdings were gainers. Specifically, Cronos Group gained 4.5 percent, Canopy Growth rose 3.7 percent, Tilray was up 3.4 percent and Aurora gained 2.6 percent.