On Tuesday (August 20), cannabidiol (CBD) brand firm cbdMD (NYSEAMERICAN:YCBD) confirmed its addition to a US-based exchange-traded fund (ETF): the Cannabis ETF (ARCA:THCX).

The North Carolina-based cannabis company will join 35 other holdings in Innovation Shares’ pure-play ETF, which follows the Innovation Labs Cannabis Index.

Martin Sumichrast, co-CEO of the company, said in a press release that cbdMD’s inclusion in the ETF will prove to be beneficial to the company’s growth.

“As a hemp derived CBD product, this is another milestone for our company that will offer us increased exposure to the US investment market and provide additional momentum in building on our brand,” Sumichrast explained.

As of Tuesday, 0.52 percent of the ETF’s total weightage was taken up by cbdMD, and the fund had US$16.9 million in net assets.

The Cannabis ETF opened on Tuesday at US$21.23. At the end of the trading session, the fund had dropped by less than 1 percent in value for a closing price of US$21.04.

Other holdings in the ETF include cannabis juggernauts like Canopy Growth (NYSE:CGC,TSX:WEED), Aurora Cannabis (NYSE:ACB,TSX:ACB) and Tilray (NASDAQ:TLRY).

Marijuana ETFs have been gaining traction in the North American investment markets recently. Several funds have launched in 2019 alone, the most recent being the Amplify Seymour Cannabis ETF (ARCA:CNBS) from Amplify ETFs last month.

Innovation Shares’ ETF itself is a fairly new addition to the marijuana landscape, only having launched in July as the first passively managed cannabis ETF.

Marijuana ETF market gains new competitors in 2019

So far in 2019, investors have also seen the start of the AdvisorShares Pure Cannabis ETF (ARCA:YOLO) and the Cambria Cannabis ETF (CBOE:TOKE) on US exchanges.

In Canada, the Evolve US Marijuana ETF (NEO:USMJ) from Evolve Funds Group and the Horizons US Marijuana Index ETF (NEO:HMUS) from Horizons ETFs Management both launched on the NEO Exchange earlier this year.

In a previous interview with the Investing News Network (INN), Kip Meadows, CEO of fund administration firm Nottingham, spoke about the emerging cannabis ETF phenomenon.

“It’s pretty evident that there’s an unfulfilled demand in the investment world in (terms of) how to get some exposure to the cannabis industry,” he said.

Nottingham works with the Cannabis ETF and the Amplify Seymour Cannabis ETF as a transfer agent, fund account and administrator.

Other cannabis cannabis experts, however, aren’t as impressed with the recent ETF craze in cannabis.

In their weekly column, New Cannabis Ventures executives Alan Brochstein and Joel Theard said that most ETFs don’t offer enough diversification, favoring holdings of large Canadian licensed producers and neglecting to expose investors to US-based multi-state operators.

“So far, ETF managers have shown a weak understanding of the sector and their holdings, as they are typically fund managers rolling the dice on a new hot theme,” the pair wrote.

Brochstein is also an analyst for the marijuana investment space at 420 Investor.

Apart from internal diversity, there are also concerns about oversaturation for cannabis ETFs.

Mark Noble, senior vice president of ETF strategy with Horizons ETFs, previously shared his opinion with INN on the growing number of ETFs hitting the market. “(Upcoming funds are going to) have a very hard time distinguishing themselves from the already established ETFs in Canada and the US,” he said.

Elliot Johnson, chief investment officer with Evolve Funds Group, shares that sentiment and told INN that a glut may cause the ETF space to stabilize.

“There’ll be some point of saturation where people will stop entering into the cannabis ETF market because they feel the ground is well covered and they’ve got nothing to contribute,” said Johnson.

For now, the marijuana ETF space is only set to increase with more participants. AdvisorShares has filed for a second actively managed cannabis fund, the AdvisorShares Pure US Cannabis ETF, which will focus entirely on the US marijuana market and trade on the NYSE Arca under the ticker MJUS.

“More people selling marijuana equities is only going to create more interest in the space, and then people will naturally gravitate towards our products,” said Noble.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.

Trulieve to donate $20,000 in scholarship funding and $15,000 to support leadership development

Trulieve Cannabis Corp . (CSE: TRUL) (OTC: TCNNF), a leading and top-performing cannabis company in the United States today announced a new partnership with the Thurgood Marshall College Fund (TMCF), the nation’s largest organization exclusively representing the Black College Community. Trulieve will donate $20,000 to help fund several college scholarships awarded to students who are attending one of the organization’s member-schools as part of Trulieve’s diversity, equity, and inclusion initiatives. The $15,000 in talent funding is earmarked to support TMCF’s internship program, reaching a diverse talent pool of students and alumni from their 47 member-schools to provide immersive experiences at Trulieve.

Keep reading... Show less

The new dispensary expands patient access to Florida’s largest inventory of medical cannabis products

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today the opening of a brand-new Florida dispensary, the Company’s 80th nationwide. The new location marks the Company’s first in Tamarac and third in Broward County expanding patient access to Florida’s largest and broadest assortment of high-quality medical cannabis products.

Keep reading... Show less

Revive Therapeutics Ltd. (“Revive” or the “Company”) (CSE: RVV, USA: RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, is pleased to announce an update on the Company’s U.S. Food & Drug Administration (“FDA”) Phase 3 clinical trial (the “Study”) to evaluate the safety and efficacy of Bucillamine in patients with mild to moderate COVID-19.

With its recent $23 million dollar financing, the Company plans to aggressively expand from 14 clinical sites to up to 50 clinical sites to meet the next enrollment goals for the Study in Q2-2020. The Study is a randomized, double-blinded, placebo-controlled trial and the safety and efficacy data analyzed at each interim analysis timepoint of 210, 400, 600 and 800 completed patients are only made available to the Independent Data and Safety Monitoring Board (“DSMB”) for review and recommendations on continuation, stopping or changes to the conduct of the Study. In the event of any serious safety concerns, the DSMB would be notified to determine any risks and provide its recommendations. To date, in this initial 210 interim point there have been no serious safety concerns that required the DSMB to be notified.

Keep reading... Show less

HempFusion Wellness Inc. (TSX:CBD.U) (OTCQX:CBDHF) (FWB:8OO) (“HempFusion” or the “Company”), a leading health and wellness CBD company utilizing the power of whole-food hemp nutrition, is pleased to announce that its common shares have been approved for DTC full-service eligibility in the United States by the Depository Trust Company (“DTC”) and can now be both traded and serviced through DTC’s electronic book-entry system.

DTC is a subsidiary of the Depository Trust & Clearing Corp. (“DTCC”) that provides clearing and settlement services for the financial markets and settles the majority of securities transactions in the United States. This electronic method of clearing securities speeds up the receipt of stock and cash and thus accelerates the settlement process for investors and brokers, enabling the stock to be traded over a much wider selection of brokerage firms.

Keep reading... Show less

CFN Enterprises Inc. (OTCQB: CNFN) (CFN Media) partners with FMW Media Works LLC to produce a regular series on the global cannabis markets to air on major financial news networks across the US. Initial segment features leading cannabis analyst and US Multi-State Operator (MSO)

CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the leading media network dedicated to the global legal cannabis, CBD and psychedelics industries, today announced that its inaugural news segment on the cannabis markets, “Cannabis Market Outlook for 2021,” will air on Bloomberg, Newsmax and Fox Business.

Keep reading... Show less