Psychedelic Bulletin: Third Psychedelics ETF Expected to Launch; Tracking Psychedelic Drug Policy Reform; One Direction for atai

Psychedelic Bulletin: Third Psychedelics ETF Expected to Launch; Tracking Psychedelic Drug Policy Reform; One Direction for atai

This week we learned that a third psychedelics ETF is expected to list on the NYSE Arca. The ETF will be actively managed, a key differentiator from existing offerings. 

Elsewhere, One Direction star Liam Payne revealed that he has invested in atai Life Sciences. Payne noted that, “Its [sic] easy to be misled by the words “Magic Mushrooms,”” but that atai “is developing real, FDA approved medication to be used together with doctors for treatment of various mental health issues.” Despite the ringing endorsement from the star, atai’s stock price was travelling in one direction for the majority of this week, falling around 7%.

Psychedelic Sector News

Actively Managed Psychedelics ETF Expected to Launch Soon

Investors may soon be able to access a basket of psychedelic stocks via a third ETF which appears set to launch on the NYSE Arca under ticker symbol PSIL. Advisorshares, a provider of actively managed ETFs, filed a preliminary prospectus for the Advisorshares Plant Medicine ETF, which would primarily invest in psychedelics companies. 

Importantly, this ETF is actively managed, as opposed to PSY and PSYK which seek to replicate the performance of a passive index of securities (usually achieved by weighting according to marketcap or some other objective metric). 

The remit for this active management (which is, in practice, the acquisition and disposal of positions in psychedelics companies) is rather broad, with the methods of selecting companies explained as follows:

The Advisor may use a variety of methods for security selection. As the Fund primarily focuses on certain industries, the Advisor intends to select companies with dominant positions in their respective markets, or those in unique positions for growth and expansion. The Advisor will utilize numerous outside analyst ratings and stock selection rating tools. In addition, the Advisor may invest the Fund’s assets in lesser-known companies that the Advisor believes have a unique opportunity for growth. At times, the Advisor may aim to buy certain out-of-favor stocks believed to be at prices below their future potential value, as measured by the Advisor or outside analysts. The Fund may sell a security when the Advisor believes that the security is overvalued or better investment opportunities are available, or to limit position size within the Fund’s portfolio.

Advisorshares provides a number of thematic ETFs in emergent sectors, with PSIL representing its latest potential addition.

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Weekend Reading

New Resource: Psychedelic Legalization & Decriminalization Tracker

Given the growing number of drug policy reform initiatives at both local and state levels, it is increasingly challenging to stay abreast of current progress.

A joint effort by Calyx Law and Emerge Law Group, led by Graham Pechenik and Sean Clancy, the tracker seeks to make this ever-changing legal landscape easier to follow.

Psychedelic drug policy reforms are complicated, controversial, and evolving; we expect this tracker will evolve as well, and hope it will continue to be a central resource for people who wish monitor ongoing legal developments.

Psychedelics Research Bulletin: June 2021

Last month research shed light on sleep quality after MDMA, welearned that microdosing leaves creativity hanging, and an exciting Phase II study with nitrous oxide was published. The debate on the mystical experience continues, fMRI studies are standing on a small foundation, and some encounter entities after smoking DMT.

Learn more in the June 2021 psychedelics research bulletin…

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