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The key to understanding the true potential of any market is demand.
And with the launch of a new cannabis ETF, the demand for cannabis stocks is spreading across the globe.
Set up by Canadian investment asset manager Purpose Investments in partnership with Deutsche Boerse, the Medical Cannabis and Wellness UCITS ETF is the first cannabis exchange-traded fund to be listed on the London Stock Exchange (LSE).
"Cannabis is a market that's huge, and it's not going away... There's a lot of money in the sector that hasn't yet been brought into the public marketplace... bringing an investment vehicle into the space shows that there are a lot of opportunities here that investors will want to add to their portfolio," Purpose's chief investment officer, Greg Taylor, said in a statement.
Demand for buying cannabis is well established, with an estimated $344 billion in sales across the globe in 2018.
All of those sales just need to find their way into legal markets.
BREAKING: The National Institute for Cannabis Investors has just released a brand-new report on how to uncover the top CBD stocks in 2020. Click here to receive your copy, free of charge.
And when you pair increased sales with global investing demand, that's really going to move the needle for cannabis stock prices...
Triggering a $1 Trillion Market for Cannabis Investing
The power of legalization is stopping black market sales and allowing regulated companies to generate revenue from selling safe products.
Just in North America, there was an estimated $70 billion in cannabis sales in 2018. Only around $10.8 billion of that was legal.
Now, with 19 states potentially passing some form of cannabis legalization in 2020, the writing on the wall is clear.
Full cannabis legalization is a question of "when," not "if."
That means revenue and profitability, and that's why there is a demand from European investors to buy North American cannabis stocks right now.
They don't want to sit on the sidelines and get left behind.
According to its "Factsheet" data, as of Dec. 31, 2019, cannabis companies in the United States consist of 79.39% of the Medical Cannabis and Wellness ETF holdings while cannabis companies in Canada consist of 20.61%.
The top 10 index holdings are as follows:[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
- Corbus Pharmaceuticals Holdings Inc. (NASDAQ: CRBP)
- Scotts-Miracle Gro Co. (NYSE: SMG)
- Innovative Industrial Properties Inc. (NYSE: IIPR)
- GW Pharmaceuticals Plc. (NASDAQ: GWPH)
- 22nd Century Group Inc. (NYSE: XXII)
- Amyris Inc. (NASDAQ: AMRS)
- Charlotte's Web Holdings Inc. (OTCMTKS: CWBHF)
- Zynerba Pharmaceuticals Inc. (NASDAQ: ZYNE)
- Pharmacielo Ltd. (OTCMTKS: PCLOF)
- Cara Therapeutics Inc. (NASDAQ: CARA)
You'll undoubtedly recognize a few of the names on that list.
And that's a good thing.
The ETF is holding some of the most well-known cannabis stocks.
These stocks will only become more well-known as everyone from average retail investors to massive hedge funds scoop up as many shares of the best cannabis companies as possible.
The demand is there across the globe to buy cannabis stocks.
Now more investors can act on that demand, thanks to this new ETF.
And increased demand is what sends stock prices up.
This Cannabis Sector Is on the Fast Track to Record-Breaking Sales
Our experts predict sales in the hemp CBD market will hit $22 BILLION in the next 12 to 36 months... that's a 3,622% increase by 2022.
And investors who get in now could see up to 1,000% returns on their investments.
That's why we've got our eye on one tiny cannabis company that could help you turn a grubstake into once-in-a-lifetime gains.
If you're ready to dive into this sector of the cannabis market, find more details here.
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About the Author
Millions of Americans are hungry for information on cannabis investing. And for good reason…
Cannabis is the fastest-growing investment opportunity of all time. It represents a turning point for investors.
That’s what inspired the launch of The National Institute for Cannabis Investors – The Institute, or NICI, for short.
The Institute brings together the brightest minds in cannabis investing and research, all to give investors the information and guidance needed to make a fortune.
NICI is the most powerful cannabis-investing tool available to investors who want to achieve their dreams of financial freedom. You can learn more about how to get free access to their cannabis profit research here.