A major cannabis Exchange Traded Fund (ETF) is due to cease trading by the end of the month as waning investor sentiment towards cannabis claims another casualty.
The Poseidon Dynamic Cannabis ETF, which was sponsored by the ‘largest cannabis fund manager’ AdvisorShares, is set to shut down less than two years after launching after seeing its value drop by nearly 90%.
According to a notice on the fund’s website the ETF, which trades under the ticker PSDN, will cease trading on August 25, seeing its assets liquidated and distributed to shareholders on September 01.
After launching onto the New York Stock Exchange in November 2021, the ETF’s price has plummeted from $9.33 to around $1 at the time of writing.
MJBizDaily reports that this is an even steeper drop than the Pure US Cannabis ETF, also under Advisorshares’ umbrella, which has seen its value decline around 84% over the same period.
Its co-managers Emily and Morgan Paxhia, the sibling founders of Poseidon Investment Management, said that the fund was ‘not immune to the broader macroeconomic environment’, specifically the ‘dramatic shift in investor sentiment’ which has hit the cannabis industry.