New Subversive Cannabis ETF Launched in the US
Amid the recent buzz surrounding cannabis industry stocks, the American company Subversive Capital Advisor has launched a new cannabis exchange-traded fund (ETF) called the Subversive Cannabis ETF, with the intriguing ticker symbol LGLZ—clearly a nod to “legalize.”
ETF Offers Investment in Promising Cannabis Businesses
The creators of LGLZ have invested $2.28 million in shares of cannabis companies that, according to Subversive Capital Advisor, are expected to thrive in the legal cannabis market. The fund’s portfolio includes American companies that earn at least 50% of their revenue from the sale of THC-containing cannabis products, specifically:
- Green Thumb Industries
- Verano Holdings
- Cresco Labs
- Trulieve
- Columbia Care
- Curaleaf
Subversive Capital Advisor plans to sell 100,000 fund shares at a price of $22.82 each. Trading of the ETF began on the Cboe BZX Exchange on September 19. However, only $3,198 worth of LGLZ shares have been purchased so far, indicating that this investment tool has yet to gain popularity among traders. Despite the low volume of shares sold, the ETF’s price has already dropped by 0.7% to $22.66.
The Cannabis Stock Market Rally Has Ended
After the US Department of Health and Human Services recommended reclassifying cannabis to Schedule III, recognizing its medical value, the stock prices of many American cannabis companies surged. As a result, the MJ PurePlay 100 Index, which tracks the value of 100 cannabis companies, soared by 79%—reaching its highest level since December 2022.
However, the bullish trend quickly faded. By September 15, the index began to decline and had dropped by 12% by the following Tuesday. Columbia Care, which saw its stock price nearly triple, experienced a 6% drop in a single day. Curaleaf, the US market leader in cannabis sales, saw its shares rise by 57% before falling by 14%.
The recent rally didn’t benefit everyone. Traders who had shorted cannabis stocks lost $91 million over the past 30 days, as the Department of Health and Human Services’ recommendation led to unexpected price increases.