Psychedelics ETFs Are Gaining Traction
Defiance ETFs launched the “Next Gen Altered Experience ETF,” the first U.S.-listed ETF that zeroes in on the psychedelics industry.
The fund went public on the NYSE Arca exchange under the ticker “PSY,” carrying net assets of around $2.59 million distributed between psychedelics and cannabis companies.
A passive ETF, PSY follows the BITA Medical Psychedelics, Cannabis and Ketamine Index.
Sylvia Jablonski, CIO of Defiance, said the companies included need to fulfill the minimum requirements established by SEC regulations for ETFs in the U.S., thus a number of low market-cap companies had to be left out.
“We have every pure company that does psychedelics research in our ETF that has a 70 million market cap and a five hundred average daily volume,” said Jablonski, speaking on a panel at the virtual Benzinga Cannabis Capital Conference on Friday.
PSY carries 21 companies, out of which 35% are psychedelics companies, including Compass Pathways (NASDAQ: CMPS), MindMed (NASDAQ: MNMD), Numinus (TSXV: NUMI) Cybin (NEO: CYBN) (OTCQB: CLXPF), Field Trip Health (CSE: FTRP) (OTCQX: FTRPF) and Red Light Holland (Canada: TRIP) (OTC Pink: TRUFF). The remaining 65% is covered by companies in the medical cannabis space.
“As soon as other [psychedelics] companies get further investment and to a point where they can comply with the rules, we’re definitely going to include them. Our goal is to have the purest psychedelics ETF out there,” Jablonski said.
Horizons Psychedelics ETF Gets a Restructuring: Horizons announced changes to the index methodology for its North American Psychedelics Index, which will take place on June 7.
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