Marijuana ETF Joins Billion Dollar Club

ETFMG Alternative Harvest ETF (MJ - Free Report) — the first and only pure ETF targeting the cannabis/marijuana industry — has been surging on easing rules and regulations on the once highly guarded drug, marijuana, for recreational and medical usage. The fund has now accumulated billion dollars in AUM since its inception in less than 14 months.

Inside The Popularity

The popularity is rising since Canada has legalized recreational cannabis and become the second country in the world to do so on a national level.

Additionally, a number of states in United States also joined the race of marijuana legalization. Congress, the White House and U.S. regulators have also softened their stance on the drug’s legalization. Michigan became the 10th state to legalize recreational cannabis use while Utah and Missouri became the 31st and 32nd states, respectively, to legalize marijuana for medical use. Recreational marijuana is expected to be legal soon for adults over the age of 21 years in New York, while the European nation of Luxembourg in late November also announced that marijuana would soon be legalized for recreational use by adult residents.

Further, the FDA approved the first non-synthetic cannabis derived medicine, EPIDIOLEX, used to treat rare forms of childhood epilepsy and Trump passed the Farm bill legalizing cannabis products derived from hemp in America, including products containing cannabidiol (CBD). All these developments have injected strong optimism into the emerging marijuana industry.

The tremendous success of the pot industry is showing no sign of slowdown as a number of alcoholic beverage companies are producing huge opportunities by investing or partnering with cannabis producers.

Per an analyst at Cowen, the U.S. legal cannabis industry is expected to reach $80 billion in sales by 2030, surpassing the carbonated soft drink market in 2017. An analyst at Haywood Securities foresees exponential growth in cannabis stocks with the U.S. cannabis market expected to be worth between $15.9 million and $21.7 billion by the year 2022.

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