Psychedelics have just become popular. The world’s first psychedelic ETF began trading on Wednesday. The Horizons Psychedelic Stock Index ETF will be traded on the Canadian NEO exchange under the symbol PSYK.
It will offer investors exposure to a basket of 17 publicly traded companies focused on using psychedelics like LSD to treat mental health problems like depression, anxiety, obsessive-compulsive disorder, PTSD and even eating disorders.
Among the companies included in this ETF is the biotech company MindMed (MMEDF), based in New York, which is supported by Shark Tank investor Kevin O’Leary. MindMed has seen its stock rise 250% in the past three months. The shares are currently traded on Canada’s NEO Exchange, as well as on the US over-the-counter market, and have applied for a uplisting on Nasdaq.
“The space is moving very, very quickly,” MindMed co-founder and co-CEO JR Rahn told Yahoo Finance Live. “What we are seeing now is, I believe, a demand from retail investors and institutional investors on how to better index this space and how to obtain maximum exposure to the greatest amount of clinical tests and technologies. So it was just a natural progression for someone to set up an ETF. “
Other American 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 psychedelic 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 psychedelic substances 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 treatment for the opioid crisis, and also greater mental health that will end up leaving COVID-19 here, a high priority for his government,” said Rahn.
Biden promised to extend the Obama administration’s Affordable Care Act by doubling efforts to enforce existing mental health parity laws and expand funding for mental health.
“[Biden’s] family themselves suffered from mental health and addiction, ”said Rahn. “During the campaign you saw former President Trump punish [Biden] in debates about his son, who was addicted to cocaine ”.
Rahn, who admits he is also a recovering cocaine addict, said 40% of Americans are struggling with mental health amid COVID-19.
“I think Biden is going to speak up and support mental health in a way that no other president has ever done and we look forward to having a dialogue with the government about it,” he said.
Alexis Christoforous is an anchor and reporter at Yahoo Finance. Follow her on Twitter @AlexisTVNews.
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