ETFMG Alternative Harvest Archives - Green Market Report

StaffOctober 6, 2021


The ETF Managers Group has launched its fourth cannabis ETF. The ETFMG 2x Daily Inverse Alternative Harvest ETF will trade on the NYSE Arca using the symbol MJIN. The company said that MJIN is designed to seek daily leveraged investment results of two times the inverse (-2x) (or opposite) of the performance of the Prime Alternative Harvest Index, providing investors access to the global cannabis ecosystem and benefitting directly from widespread medicinal and recreational legalization initiatives.

“The launch of MJIN marks another first-to-market for ETFMG and rounds out our full suite of cannabis investment offerings,” says Sam Masucci, CEO, and Founder of ETFMG. “We are a one-stop shop for investors looking to capitalize on the global and U.S. cannabis sectors.”

The new ETF joins MJ, the first U.S. listed and world’s largest cannabis ETF, MJUS, providing access to top names in U.S. cannabis, including multi-state operators (MSOs) and MJXL, providing 2x daily the performance of the Prime Alternative Harvest Index. The company said in a statement that the new ETF also adds to the firm’s suite of 2x Daily Leveraged ETFs, structured to give investors short-term, magnified exposure to high-growth themes already offered by ETFMG.

“Investor interest in the cannabis sector has continued to increase as the industry has expanded on the back of strong fundamentals and the growing prospect of legislative reform. While most investors are primarily focused on capturing the long-term potential of the cannabis industry, many have been seeking a short-term trading vehicle to help hedge, from time to time, the downside volatility that can come along with investing in an emerging sector. As the cannabis industry continues to expand and diversify, so should its related investment options. It’s a privilege to be able to provide cannabis investors with a full suite of investment options, including the ability to achieve either long or short exposure to the sector,” says Jason Wilson, ETFMG’s Cannabis Research and Banking Expert.

“We are proud to expand our relationship with ETFMG as it launches yet another essential investment product for the cannabis industry,” says Kris Monaco, Managing Partner and Co-Founder of Prime Indexes. “ETFMG’s new fund reinforces the Prime Alternative Harvest index as the key benchmark for investors in an industry that is still in its infancy.” 


Debra BorchardtJuly 8, 2021


Cannabis stocks have taken a beating in the second quarter, so investors are hoping that valuations will recover in the back half of the year. In exclusive comments to Green Market Report, Jason Wilson, cannabis banking and research expert at ETFMG (NYSE: MJ), which issues the ETFMG Alternative Harvest exchange-traded fund, has given his opinion about the industry for the rest of 2021. The comments are overwhelmingly positive. Despite the downturn in stock valuations, the MJ cannabis ETF has seen a return for the first six months of 2021 that has exceeded 40%.

“Several factors have been driving cannabis sales over the last few years: the size of the total addressable market has expanded as more states and countries move to legalize cannabis; the number of consumers has increased in existing markets as canna-curious customers transition to cannabis products, and transaction volume among existing customers in established markets has increased as the number of dispensaries has grown and buying experiences have improved,” said Wilson. He noted that the market has been expanding at a rate of 30% every year.

“There has been some speculation that the recent growth in the cannabis market has been fuelled by the pandemic, leading some to suggest that 2021 might not experience the sales growth of years past, but so far, as the economy starts to recover and emerge from COVID-19, the trend of strong sales growth has continued in 2021. In the U.S., mature markets such as Colorado, Oregon, and Washington state are averaging 26% year-over-year sales growth while newer markets such as Illinois, Massachusetts, Michigan and Pennsylvania are averaging 136% year-over-year sales growth. The story has been similar in Canada where 2021 Q1 sales exceeded 2020 Q1 sales by approximately 70%,” he added.

There are many positive catalysts to support continued growth. While 18 states have legalized the sale of adult-use cannabis, the actual sale of recreational cannabis has only begun in 11 states. New Jersey could begin sales in 2021, while New York is slated to begin sales in April 2022. These are expected to be two of the largest markets in the industry. In addition to these two, New Mexico is on deck to begin its adult-use sales in April 2022 as well.

The industry has managed to persevere even though it has been subjected to numerous hurdles like a lack of banking and credit card processing, unfair taxation and sometimes expensive capital. Wilson though believes that with voter support for federal legalization initiatives at an all-time high, combined with the positive economic impact cannabis legalization would provide through job creation and increased tax revenues (it has been estimated that the total U.S. economic impact will reach $92 billion in 2021), it is widely anticipated that the current administration will have enough momentum to pass federal legislation that provides meaningful cannabis reform.

He concluded, “So while the current challenges and headwinds have created significant volatility for investors to date, it appears that the catalysts remain in place for the domestic and global cannabis markets to continue to expand at a significant pace for the foreseeable future.”


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