Cannabis ETFs Surge On Marijuana Legalization in New York As Bitcoin ETFs continue to Gather Steam

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US President Joe Biden launched an infrastructure packaged dubbed the American Jobs Plan at the end of last month, which includes investments to re-energize power infrastructure and enhance renewable energy. One clean energy ETF, Invesco Solar ETF (NYSEAMERICAN:TAN), looks to leverage opportunities in the sector.

Invesco Solar ETF leveraging clean energy opportunities

The fund plans to invest around 90% of its total assets in American depositary receipts (ADRs), securities, and global depositary receipts (GDRs), which are part of the MAC Global Solar Energy index. Interestingly the index comprises companies in the solar energy sector, and it is computed through net return, withholding non-resident investor’s applicable taxes. The ETF’s expense ratio is 0.69%, but in the past 12 months, the fund has jumped 260%. Therefore the price per gain performance is hard to beat.

Notably, solar energy has been a distinct energy source considered out of reach for most people. But the cost of solar power equipment making materials nowadays has dropped, and most households are considering solar. President Biden plans to energize the solar power jobs industry.

Cannabis ETFs surge in the news of weed legalization in New York

In the cannabis industry, ETFs are riding on news of marijuana legalization in New York. Although some cannabis ETFs are lighting a celebratory mode, retail investors have boosted one ETF to stand out. Cannabis stocks jumped after New York Governor Andrew Cuomo assented to legislation to legalize recreational use of cannabis in the State. Among the standout stocks is AdvisorShares Pure US Cannabis EFT (NYSEAMERICAN:MSOS), which surged almost 8%, outperforming similar products such as ETFMG Alternative Harvest ETF (NYSEAMERICAN:MJ).

The trigger was retail interest in AdvisorShares Pure US Cannabis ETF, which reflected monster trading volume on the ETF, which was over its daily average and higher than the sector. Other immediate indicators included activity on Reddit r/wallstreetbets where one user said, “you can’t trade the Canadian weed stonks, MSOS is the only play today. Greenwaves Advisors founder Matt Karnes said that the ETF looked like it had directly invested in US plant-touching businesses. He stated the MSOS has a synthetic return which likely attracts retail investors.

Grayscale converting GBTC into an ETF

Following the recent suggestions of BTC ETFs introduction in the US, Grayscale Investments has said that ETFs could be the final products for its cryptocurrency trusts. The company reiterated plans to convert its Grayscale Bitcoin Trust (GBTC) into an ETF. Most importantly, Grayscale noted that it started offering investors exposure to cryptocurrencies in the form of securities in 2013 when it launched GBTC.

The firm alluded that GBTC and Grayscale Ethereaum Trust (ETHE) were the only funds globally that are SEC-reporting entities. Grayscale noted that this is a model all cryptocurrency trusts are following. The crypto asset manager indicated that its crypto trusts’ life cycle comprises four stages. After the launch of a private placement for each trust, the next step is getting a public quotation in a secondary market. Four of its trusts are in this stage.

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