Investors took a big hit of the marijuana-related exchange traded fund, funneling millions of dollars into the new ETF after a little over a week of trading.
The ETFMG Alternative Harvest ETF (NYSEArca: MJX) has already seen assets surge to $256.8 million from its initial $5.7 million on December 26, its first trading day. Over the past week, MJX has also gained 10.8%.
Coincidentally, the debut of MJX happened just days before California opened stores for legal sales of recreational marijuana. Recreational marijuana use was legal in the largest state throughout 2017, but the opening of retail outlets dedicated to legal weed sales was prohibited until the start of 2018.
“There was obviously a lot of pent-up demand,” Sam Masucci, chief executive officer of Summit, ETF Managers Group LLC, which runs the exchange traded fund, told Bloomberg. “People want to play the theme and the theme is simple: the growing acceptance of marijuana.”
If MJX may maintain its current rate of investment interest among investors, the Alternative Harvest ETF could grow to $1 billion in assets under management in less than two months, which would make it the second-fastest ETF to hit $1 billion, according to Bloomberg.