Alternative Investments: Cannabis ETFs Because States are COVID-strapped for Cash

June 25, 2020 | Alternative Investments, News

Besides, marijuana ETFs can benefit from bullish growth projections.

According to a report from ArcView, a San Francisco-based cannabis investment and research firm, the cannabis market in the USA will grow to $33.9 billion by 2025 at a CAGR of 18.2%. During the pandemic, marijuana was decreed as essential, and business has been booming since then (US News). Further, more states could legalize cannabis as a source for additional revenues. (ETF Trends)

Legalization at the federal level

According to one view, marijuana is likely to be legalized at the federal level by 2021 and sail through both the Senate and the House in 2021 – if the Democrats capture the Senate.

This could prove to be very bullish for pot stocks.

States in a liquidity crunch

Again, as many as 16 states were expected to go for legalizing cannabis this year, but their efforts have lost momentum due to the pandemic, according to Canaccord Genuity analyst Bobby Burleson.

However, given the hit that most states’ finances have taken from COVID, these efforts may soon resume to beef up revenues from an additional and lucrative source – pot sales.

According to Barrons, a study of 38 states forecasts that they could confront significant budgetary shortfalls in the fiscal year ended June 30.

New products

Cannabis will soon find new applications such as in health and wellness, oil extracts, tinctures, topicals, and capsules, all pointing to new markets that could prove beneficial for cannabis companies.


The Global X Cannabis ETF (NASDAQ: POTX) is a likely candidate that could turn further bullish based on the fundamentals discussed above.

It holds companies “involved in the legal production, growth, and distribution of cannabis and industrial hemp, as well as those involved in providing financial services to the cannabis industry, pharmaceutical applications of cannabis, cannabidiol (i.e., CBD), or other related uses including but not limited to extracts, derivatives or synthetic versions.”

The ETF has an expense ratio of 0.50%.

The fund is down 23.12% year to date but up over 49% over the last three months.

Related Story:  Cannabis Growth Projections Impressive; POTX to Benefit                                           

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Venture Capital: Health Data Analytics Platform Evidation Raises $45M
July 2, 2020     News, Venture Capital

Evidation Health’s Achievement platform collects everyday health data for use in innovative research and health platforms. Giving due emphasis to user privacy and controlled, permissioned health data, the platform gathers…
Artificial Intelligence: A UVC Robot Disinfects 4,000 Sq Ft Food Bank in 30 Minutes
July 2, 2020     Artificial Intelligence, News

MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL), Ava Robotics, and the Greater Boston Food Bank (GBFB) collaborated on a robotic solution to the problem of disinfecting a large area…
Alternative Investments: TrueMark Investments Launches A Structured Outcome ETF That Tracks the S&P 500 Index
July 2, 2020     Alternative Investments, News

TrueMark Investments has launched the TrueShares Structured Outcome (July) ETF (NYSEAMERICAN: JULZ) that offers investors exposure to the S&P 500 price index. The ETF is a “structured outcome” product, the…
Digital Assets: Crypto Gathers Pace in India After Top Court Decision
July 2, 2020     Digital Assets, News

The Supreme Court of India recently struck down a circular issued by the Reserve Bank of India that barred banks from serving crypto businesses such as traders, exchanges, or others….