Defiance Next Gen Altered Experience ETF began trading Friday on the New York Stock Exchange under the symbol PSY, becoming the first U.S. listed Exchange Traded Fund (ETF) focused on psychedelics. The fund rose 4.1% during its first day of trading.
Managed by FinTech asset manager Defiance ETFs LLC, Defiance Next Gen Altered Experience ETF seeks to track the BITA Medical Psychedelics, Cannabis, and Ketamine Index, a rules-based index that tracks the performance of companies listed in North American Exchanges that operate business models focused on the legal usage of psychedelics, cannabis, and ketamine for therapeutic purposes.
Companies included in the ETF must have a minimum market capitalization of $75 million. They must also produce, distribute, or offer services related to medical psychedelics, medical cannabis, or ketamine and its derivatives. Its top holdings include Charlottes Web Holdings Inc. and Aurora Cannabis Inc. Defiance ETFs filed the ETF with the SEC in March.
In January, Horizons Psychedelic ETF launched in Canada, becoming the world’s first psychedelic ETF. Its top holdings include Seelos Therapeutics Inc., Mind Medicine MindMed Inc., and Cybin Inc. The ETF is currently awaiting approval from U.S. regulators to launch a sister psychedelics ETF for U.S. markets.
“Mental illnesses are on the rise and existing medications have been found wanting. A staggering 30% of depression patients do not respond to any currently available treatment,” Defiance ETFs said. “Research budgets for psychiatric medicine in large companies have fallen by 70% in 10 years, as confidence wanes that more investment in the same direction will produce improved results.”
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