Legal Cannabis Access Reaches 50% of US Adults, ETF Outlook Brightens
AdvisorShares Pure US Cannabis ETF holds US cannabis equities pressured by federal illegality, but with half the US population now eligible for legal purchase and 105 million accessing medical cannabis, growth prospects improve. Federal rescheduling reviews and upcoming market openings in Virginia and Pennsylvania could catalyze a recovery.
1. Legalization Expands to Half of US Population
Half of US adults now reside in states where recreational cannabis purchase is legal, representing roughly 50% of the population. Medical cannabis is accessible to 105 million adults, with new markets set to open in Virginia next year and legislative efforts in Pennsylvania advancing toward legalization.
2. Federal Rescheduling Efforts Underway
Federal agencies are under directives from both President Biden and former President Trump to reclassify cannabis from Schedule I to Schedule III. These rescheduling reviews could unlock FDA pathways for medical products and broader research, though regulatory timelines remain uncertain and slow-moving.
3. Market Impact on US Cannabis ETF Holdings
US cannabis equities, which comprise the holdings of AdvisorShares Pure US Cannabis ETF, have traded lower due to federal prohibition. Canadian firms maintain advantages with Nasdaq listings and international distribution deals, but potential federal reforms and state expansions could catalyze a rebound in US-focused cannabis ETFs.