In another historic first for psychedelic medicine, the world’s first exchange-traded fund (ETF) for psychedelic drug companies is set to debut this week in Toronto. The opening of the world’s first psychedelic ETF arrives on the heels of major investor interest in psychedelic medicine, particularly for their ability to effectively treat many challenging mental illnesses.
Named the Horizons Psychedelic Stock index ETF, and listed as PSYK, the fund will track North American psychedelic stocks. They are set to start trading on Wednesday on the NEO exchange.
A whole host- of companies that work with psychedelic compounds have begun to emerge and multiply. The revival of psychedelic science unearthing their powerful potential to collectively heal humankind, especially now, has already attracted countless investors. They are hopeful that psychedelic drugs will disrupt the $70 billion dollar market for mental health treatment. Many of the investors that took part during the “green rush” experienced by cannabis investors are the same to enter this space. With recent groundbreaking research coming out of world famous institutions, it’s no wonder investors are hopeful and optimistic.
Psychedelic medicine has already seen historic progress in 2020, setting the stage for an even bigger 2021. From major financings and raises to profound discoveries in psychedelic science, it’s safe to say the world is ready for psychedelic medicine.
“The space is moving very, very quickly,” MindMed co-founder and co-CEO JR Rahn told Yahoo Finance Live. “What we’re seeing now is, I believe, a demand from both retail investors and institutional investors on how to best index this space and how to gain the most exposure to the most amount of clinical trials and technologies. So it was just a natural progression that somebody was going to set up an ETF.”
Rahb also went on to say the industry has a likely ally in President Joe Biden. Presidential candidates aside, psychedelics won big during the 2020 election. A handful of states, such as Oregon and Washington DC, voted to legalize the use of psychedelics, such as MDMA and psilocybin.
For North American psychedelic companies included in the ETF, they must maintain at least a C$25 million market capitalization, C$0.10 stock price and C$125,000 average daily traded value, Hawkins said. Revive Therapeutics Ltd., Mind Cure Health Inc. and Mydecine Innovations Group Inc. are among companies saying they’ll be included into PSYK.
The times are changing and the world is ready for better mental health treatments. As rates of mental illness are skyrocketing during this age of COVID, there’s no better time to radically revamp our approach towards treating mental illness. As the revival of psychedelic medicine continues to expand, the world’s first psychedelic ETF is sure to be a powerful resource for retail and institutional investors alike.