Cannabis ETFs Soar On News Of Democrats Winning Senate

Cannabis stocks jumped following the Democratic victories in Georgia’s two runoff elections that have spurred hopes for near-term decriminalization. Democratic candidates — Jon Ossoff and the Rev. Raphael Warnock — defeated the Republican candidates GOP Senator David Perdue and incumbent Senator Kelly Loeffler, respectively, increasing expectations that Democrats will take control of the Senate.

It has set the stage for a “Blue Wave,” wherein Democrats will control both Houses of Congress and the White House for the first time in a decade. The government has the friendliest political environment for the cannabis industries in U.S. history. This is especially true as Biden government will expedite the legalization of marijuana at the federal level, thereby providing a boost to the U.S. industry (read: Cannabis ETFs Set to Soar in 2021 on More U.S. Legalization).

Now with the Blue Wave, the markets are anticipating that the Marijuana Opportunity Reinvestment and Expungement (MORE) Act passed by the House in December will soon be approved by the Senate, which otherwise had a  lesser chance to pass. The bill aims to decriminalize cannabis at the national level for the first time, and remove cannabis from the list of federally controlled substances and erase certain federal convictions.

This has resulted in a spike in cannabis ETFs. In particular, The Cannabis ETF THCX, Global X Cannabis ETF POTX, ETFMG Alternative Harvest ETF MJ and Amplify Seymour Cannabis ETF CNBS have been the biggest winners, gaining nearly 8% each. Below we profile these ETFs in detail:


This ETF offers investors exposure to a basket of stocks that are expected to benefit from the growth of hemp and legal marijuana industries. Holding 28 stocks in the basket, Canadian firms make up for 65.5% share while the United States takes around 28.6% of assets. The fund has amassed about $50.3 million in AUM and trades in a good volume of about 125,000 shares per day, on average. It charges 70 bps in annual fees.


1 2
View single page >> |

Disclosure: contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.