Pummeled Pot ETFs Face Worse Ahead After Senate Banking Letdown
- Pot stocks part of ‘speculative bubble’ that popped, says Sohn
- Cannabis ETFs suffered sharp drawdowns since early December
Photographer: Stefan Wermuth/Bloomberg
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Cannabis ETFs endured steep losses this year alongside other risky bets, but the onslaught accelerated in December after a regulatory disappointment.
Both the $467 million AdvisorShares Pure US Cannabis ETF (ticker: MSOS) and $1.4 million Roundhill Cannabis ETF (WEED) are down nearly 50% from Dec. 5 highs after rallying on an end-of-year push by Senate lawmakers to attach a marijuana banking bill to a must-pass government funding package, which ultimately failed. MSOS, the largest pot exchange-traded fund, lost $7.4 million of assets in its latest session, the biggest outflow since April.