The very first psychedelics ETF has launched, supported by Canadian fund manager

by druginc

The very first psychedelics ETF has launched, supported by Canadian fund manager

The first-ever psychedelics ETF is traded today on the Canadian NEO exchange, giving investors a view of publicly traded companies focused on developing therapeutic solutions that use psychedelics.

Canada-based Horizons ETF Management announced last Friday that it has submitted its final prospectus to launch the Horizons Psychedelic Stock Index ETF (PSYK).

“PSYK will be the world's first Exchange Traded Fund (“ETF”) focused on emerging psychedelics led by life sciences and pharmaceutical companies,” said Horizons ETFs.

Small studies have shown that psychedelic compounds, such as psilocybin, when administered in a clinical setting can reduce symptoms of anxiety, depression, addiction and post-traumatic stress disorder.

PSYK will track the North American Psychedelic Stock Index, which is owned and operated by Horizon ETFs. Germany-based Solactive AG is the independent calculation agent for the index.

ETF for psychedelics matches cannabis developments in 2017

Horizons ETFs launched the world's first cannabis-focused ETF in 2017, and CEO Steven Hawkins says he sees many similarities between that industry in 2017 and the psychedelic industry today.

“After decades of restrictions, recent policy changes and exceptions in Canada and the USA provided more research into the therapeutic application of psychedelic compounds, and the potential to create an entirely new market for drugs derived from psychedelics, ”said Steve Hawkins, President and CEO of Horizons ETFs.

ETF for psychedelics matches cannabis developments in 2017
ETF for psychedelics matches cannabis developments in 2017 (afb.)

In November 2020, Oregon became the first US state to legalize psilocybin for therapeutic uses. Proponents of the legislation say the bill will open the door for more research into the therapeutic benefits of psilocybin. But researchers say state-level legislation won't make their efforts easier and legalization often goes faster than science.

Sources including BusinessInsider (EN), NewsWire (EN), TheGrowthOP (EN)

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