PETER DEJONG / ASSOCIATED PRESS
The first psychedelic ETF will start trading on the Canadian NEO exchange next Wednesday, giving investors exposure to publicly traded companies focused on developing therapeutic solutions that use psychedelics.
Horizons ETF Management, based in Canada, announced on Friday that it had presented its final prospectus for the launch of the Horizons Psychedelic Stock Index ETF (PSYK).
“PSYK will be the world’s first exchange-traded fund (“ETF“) focused on the emerging opportunity for psychedelics led by life sciences and pharmaceutical companies,” Horizons ETFs said on Friday.
Small studies have found that psychedelic compounds, such as psilocybin, when administered in a clinical setting, have the potential to 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. Solactive AG, based in Germany, is the independent calculation agent for the index.
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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 now.
“After decades of restrictions, recent policy changes and exemptions in Canada and the United States have enabled increased research into the therapeutic application of psychedelic compounds and the potential to create an entirely new market for psychedelic-derived drugs,” said Steve Hawkins, Horizons ETFs President and CEO.
In November 2020, Oregon became the first U.S. state to legalize psilocybin for therapeutic uses. Proponents of the legislation say the bill will open the door to more research on the therapeutic benefits of psilocybin. But the researchers say state law will not make their efforts any easier and legalization is advancing faster than science.