[ad_1]
The world’s first psychedelic ETF (exchange-traded fund) will start trading on Wednesday. The Horizons Psychedelic Stock Index ETF will trade on the NEO Canadian Stock Exchange under the symbol PSYK.
It will provide investors with exposure to a basket of 17 publicly traded companies focused on the use of psychedelics like LSD to treat mental health issues such as depression, anxiety, obsessive-compulsive disorder, PTSD and even eating disorders.
Among the companies included in this ETF is New York-based biotech firm MindMed (MMEDF), which is backed by Shark Tank investor Kevin O’Leary. MindMed has seen its share climb 250% in the past three months. The stock is currently trading on Canada’s NEO stock exchange as well as the over-the-counter market in the United States and has requested an increase in value from the Nasdaq.
“The space is changing very, very quickly,” MindMed co-founder and co-CEO JR Rahn told Yahoo Finance Live. “What we’re seeing right now is, I believe, a demand from retail investors and institutional investors on how best to index this space and how to get the most exposure to the most clinical trials and technologies. So it was a natural progression that someone was going to create an ETF. “
Other US and Canadian life science companies included in the ETF’s initial portfolio are Abbvie (ABBV), COMPASS Pathways (CMPS), Seelos Therapeutics (SEEL) and Nova Mentis Life Science (NOVA).
The launch of the ETF is just the latest catalyst for the psychedelics industry. On election day, a handful of states, including Oregon and Washington, DC, voted to legalize the use of MDMA (also known as ecstasy) and other psychedelics in licensed facilities for mental health purposes.
Rahn believes the industry has an advocate for President Joe Biden.
“I really think he’s going to make treating the opioid crisis, and also better mental health that will eventually come out of COVID-19 here, a high priority for his administration,” Rahn said.
Biden has vowed to build on the Obama administration’s Affordable Care Act by stepping up efforts to enforce existing mental health parity laws and increase funding for mental health.
“[Biden’s] her own family suffered from mental health and addiction issues, ”Rahn said. “On the way to the campaign, you saw former President Trump chastising [Biden] in debates over her son, who was addicted to cocaine.
Rahn, who admits he’s also a recovering drug addict, said 40% of Americans had mental health issues amid COVID-19.
“I think Biden is going to come and support mental health in a way that no other president has ever done, and we’re hoping to have a dialogue with the administration on that,” he said.
Alexis Christoforous is a presenter and reporter for Yahoo Finance. Follow her on Twitter @AlexisTVNews.
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, Youtube, and reddit.
Find live stock quotes and the latest economic and financial news
For tutorials and information on investing and trading stocks, see Having dinner
[ad_2]
Source link