For the third week in a row cannabis funds continue to experience an upward trajectory, with the Cannabis & Psychedelics theme gaining 2.09% over the past week. This positive trend is largely due to anticipated progress in marijuana regulations, with the growth in cannabis stocks significantly linked to the upcoming review session by the Senate Banking, Housing, and Urban Affairs Committee regarding the SAFE Banking Act scheduled towards end of September. This legislation is aimed at improving banking facilities for legal enterprises dealing with marijuana.
The bipartisan approval and trust from the Senate marks a significant milestone on the path towards a nationwide reform of cannabis laws. Such legislative action could potentially mitigate the current financial limitations experienced by lawful marijuana businesses, thus stimulating their expansion and profitability.
Changes in regulatory frameworks can have significant implications for future market dynamics - both in terms of opportunities and challenges - consequently stakeholders within the cannabis sector have been keenly observing updates related to the SAFE Banking Act. Given that enhanced access to banking services is expected for legitimate businesses trading marijuana products it's likely such entities will enjoy more conducive operating conditions going forward.
In terms of fund performance, the Rize Medical Cannabis and Life Sciences UCITS ETF (FLWR) gained +2.50% over the past week, with year to date performance of -18.19%.
Group Data: Cannabis & Psychedelics
Funds Specific Data: FLWR
