Cannabis ETFs Eye A Breakout As Trump Weighs Major Marijuana Reclassification
Cannabis-focused ETFs, a segment that’s spent years in the market’s penalty box, are suddenly back on traders’ radar as President Donald Trump weighs a move to reclassify marijuana as a Schedule III drug.
The Washington Post reported Thursday that Trump is preparing an executive order directing federal agencies to loosen federal restrictions, a shift that could reshape the economics of U.S. cannabis companies and, by extension, the ETFs that track them.
ETFs That Were The First To Benefit
For now, funds like the AdvisorShares Pure U.S. Cannabis ETF (NYSE:MSOS) and Amplify Seymour Cannabis ETF (NYSE:CNBS) sit in the spotlight, with 35% and 34% rallies, respectively. MSOS, the largest U.S.-focused cannabis ETF, is packed with multi-state operators, or MSOs, that suffer the most under current tax codes.
A shift to Schedule III would let these companies deduct business expenses for the first time since Section 280E came into force, as explained by The Cannabis Times. ETF investors could capture this profitability boost early.
Meanwhile, AdvisorShares Pure Cannabis ETF <a class="ticker-link" data-ticker="YOLO" data-exchange="ARCA" href="https://www.benzinga.com/quote/YOLO" …