Horizons ETFs Management Canada Inc. is launching what it says is the world’s first exchange-traded fund focused on North American life science and pharmaceutical companies developing therapeutic solutions using psychedelics.
The company announced its fund, the Horizons Psychedelic Stock Index ETF, was conditionally approved for listing by the NEO Exchange and is slated to begin trading on Wednesday.
A growing body of clinical research has demonstrated the potential use of psychedelic compounds, such as psilocybin and ketamine, as treatment for mental illness, depression, addiction, post-traumatic stress disorder, and other medical conditions, said a press release.
“Recent policy changes and exemptions in Canada and the United States have allowed for increased research in the therapeutic application of psychedelic compounds and the potential to create an entirely new marketplace for drugs derived from psychedelics,” said Steve Hawkins, president and chief executive officer of Horizons’ ETFs. “We launched [a] cannabis-focused ETF in 2017 . . . and we see many similarities between that industry in 2017 when it was in its infancy to the psychedelics industry now. We see the potential for significant growth from this new sector like what we have witnessed with the cannabis industry during the last few years.”