Marijuana ETFs are rushing to list on US exchanges soon after obtaining a green light from the Securities and Exchange Commission.
Offered that marijuana exchange traded funds can show an independent legal opinion that no holdings violate federal law, they can now list in the US, according to the SEC.
Till now, confusion about marijuana’s legal status has stopped Wall Street from participating also heavily in the business. Even though marijuana is legal in some states it remains illegal federally and some of the problems, especially about federal banking law, are nonetheless becoming worked by way of.
Because April, 5 marijuana ETFs have listed, and they come in all distinctive shapes and sizes: some are passive index-tracking funds, with the appear and really feel of an ETF other people have opted for active stock choosing by business gurus in an strategy additional characteristic of mutual funds.
Dave Nadig, managing director of ETF.com, says: “It feels like a greenfield chance, a lot like the dotcom stocks in the early 1990s. Investors really feel like the Amazon of cannabis is going to come from someplace.”
“[This] has caught investor consideration in a way handful of points genuinely do,” he adds. [Read more at Financial Times]