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A New Marijuana ETF Is Coming to the New York Stock Exchange

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For the first time ever, an exchange traded fund (ETF) with exposure to the marijuana industry has received approval to join the New York Stock Exchange (NYSE). The new ETF will provide investors with a simple way to access a burgeoning cannabis industry that some say is the biggest market opportunity of a generation.

NYSE Marijuana Fund

Beginning Dec. 26, investors will be able to purchase the Alternative Agroscience ETF through a NYSE subsidiary. The ETF tracks the Alternative Agroscience Index, which seeks exposure to ventures primarily engaged in the cultivation, production and distribution of cannabis products. The investment universe includes companies involved in the manufacturing of cannabinoid-related drugs, businesses that make fertilizers and pharmaceuticals.

The ETF only tracks companies in states where marijuana is legal. As of November 2017, 29 states and Washington, D.C. have legalized medical weed. A total of eight states and D.C. have legalized recreational marijuana sales.

North of the border, Canada is on track to legalize recreational weed this coming July. Horizons has already launched its Marijuana Life Sciences ETF (HMMJ) on the Toronto Stock Exchange. The fund has already gained more than 21% since April with total assets nearing $234 million CAD. The fund has returned nearly 52% over the past three months as capital flowed back into marijuana investments.

Marijuana: A Budding Industry

The marijuana industry is expected to be one of the biggest opportunities since the dot-com era. A recent publication by Arcview Market Research predicted that legal marijuana sales will exceed $20 billion by 2020.

Colorado has emerged as an important bellwether of the marijuana industry. The state legalized recreational weed back in 2014. Over that period, the state has generated hundreds of millions of dollars in tax revenue. Legalization has also generated a booming cannabis tourism industry.

Colorado’s population and economic footprint are only a fraction of California’s, a state that legalized recreational cannabis during the last election cycle. If Colorado is a proxy for what could happen in California, then Arcview’s estimate is probably on the conservative side. The state already generates roughly $50 million annually in tax revenue from medical marijuana.

Marijuana stocks have been adding value at a rapid rate over the past three weeks. The North American Marijuana Index has gained more than 27% since Oct. 26. The index consists of 35 components, including GW Pharmaceuticals Plc  (GWPH),  Canopy Growth Corporation (WEED) and CannTrust Holdings Inc. (TRST).

The North American Marijuana Index is further broken down into U.S. and Canadian indexes. The benchmarks represent sectors as diverse as consumption devices, AgriTech and biopharmaceuticals.

The future of marijuana investments remains bright, but regulatory hurdles at the federal level could make it difficult for U.S. companies to manage their growing wealth. That’s because cannabis remains illegal at the federal level, which means federally insured banks cannot lend to the sector. States like California have already expressed a willingness to fight federal encroachment on state rights when it comes to cannabis. It remains to be seen whether other states will follow suite.

Disclaimer: The author currently has no investment stake in marijuana.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 649 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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4 Comments

4 Comments

  1. combatmedic6181

    November 19, 2017 at 10:58 pm

    What’s the ticker/symbol for the ETF?

    • Sam Bourgi

      November 20, 2017 at 1:50 am

      It’s offered by ETFMG, but the ticker symbol seems to be pending. I will keep my eye on it, combatmedic6181!

  2. drumdibum

    November 20, 2017 at 12:11 am

    Interesting topic. It would be great if you us updated about stocks with high potential.

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Crypto’s Watershed Moment Could Be Q1 2019

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If there’s one thing that the 2018 cryptocurrency market has taught investors it’s that you have to be able to see the forest from the trees. Even as the bitcoin price remains approximately 70% from its peak, Fidelity Investments and Bakkt have proven that the industry infrastructure that has been missing has begun to take shape. Today the bitcoin price is hovering at $6,542 on modest volume of $3.2 billion. In order for any gains to take hold, however, trading volume will have to strengthen to more robust levels.

Meanwhile, market strategists like Fundstrat’s Thomas Lee are sticking to their bullish price forecasts of more than $20,000 by year-end while Galaxy Digital’s Mike Novogratz has revised his outlook to the downside. One thing the market seems to agree on is that institutional capital will be a catalyst for gains, and if you ask traders like BKCM’s Brian Kelly, the tide has already begun to turn.

“I would expect over the next three months, six months you start to see the proverbial herd really start to turn in this direction,” he said, adding that based on anecdotal evidence from his hedge fund clients, the plans of big investors to enter crypto are afoot.

The first quarter of 2019 is largely expected to be a watershed period for crypto, as not only are big investors expected to enter the market but according to Kelly, it’s also when traditional retail brokerage houses could unveil their crypto trading solutions to the market.

Fidelity Investments is a first-mover, but their product leaves out individual investors. In an interview with CNBC, Kelly suggested that Schwab and E*Trade could already be working on crypto solutions for retail investors that could be introduced as soon as Q1 2019. Kelly pointed to crypto trading apps like Robinhood, which was able to attract 1 million users to its crypto trading app in a few short days while traditional competitors missed out.

Satoshi’s Vision

But not all of the crypto community is anxiously awaiting institutional adoption. Jackson Palmer, who created one of this year’s best-performing cryptocurrencies, Dogecoin (DOGE), warned that “the institutionalization of crypto will heavily recentralize both power structures and token distribution. So you can say goodbye to much of the original vision for the technology.”

Indeed, Satoshi’s vision was for a “peer-to-peer electronic cash system”, and as the launch of bitcoin futures has proven, the impact of institutional trading products could have negative consequences. But as Kelly pointed out, the industry needs “fresh capital.” And institutional involvement is also a sign of a maturing Bitcoin network, one whose adoption is likely to increase as recognizable brands continue to enter the space.

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Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 69 rated postsGerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.




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Zcash Price Analysis: What is Behind the Recent Surge in Price?

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  • Zcash had jumped over 17% over the period of 12-18th October, before running into sellers.
  • The foundation set to launch the Sapling protocol upgrade. To improve efficiency for shielded transactions.

Zcash over a 6-day period from 12-18th October gained a whopping 17%. Moving quickly from as low as $108, to then be above $126. Since, the price has run into some sellers and touted profit-takinggiven the large run in such as short time frame.

What Is This ‘Zcash’ (ZEC)?

Zcash was a hard fork of Bitcoin in 2016. Unlike the number one ranked crypto by market cap, privacy is ensured via Zcash. Personal and transaction data are kept confidential. This being facilitated through zero-knowledge proofs, allowing conducted transactions to go through verification without any required details about the sender, receiver as well as the transacted amount.

Zcash Set to Launch Sapling Protocol Upgrade

The Zcash foundation recently updated via their blog ‘Sapling Transaction Anatomy’. Full breakdown details can be read there as they are set to launch the Sapling protocol upgrade.

Sapling, this will be a network upgrade that aims to substantially improve efficiency for shielded transactions – paving the way for broad mobile, exchange as well as vendor adoption of Zcash shielded addresses. Their motivations for the Sapling upgrade are to increase speed on these shielded transactions.

Coinbase Speculation Continues to Do Rounds

The community around Zcash continues to speculate on whether the privacy-focused crypto will be added to Coinbase. Earlier in the year, Coinbase said they were exploring the possibility of listing Zcash and others, such as Cardano, Basic Attention Token, Stellar Lumens and 0x on its platforms. This covered back in July and does not guarantee it will be added, but the hope still appears to be flowing through the community.

Zcash Jumps to 20th Largest by Market Cap

Earlier this week, Zcash managed to break into the top 20 cryptocurrencies by market cap. It overtook Dogecoin. The current market cap at time of writing seen at $588,429,693, ahead of DOGE at $513,884,230.

Technical Review – Daily Chart

ZEC/USD daily chart

ZEC/USD has been cooling over the past two sessions, after its recent 17% price run. It isn’t too much of a surprise to see the current easing, given the fast surge higher. Near-term support can be found around $115 area, then further south within a demand zone tracking from $110-105. Looking to the upside, sellers are camped heading into the $130 territory. A higher near-term target would be eyed at $145, price last traded here on 28th September.

This year Zcash is still down some 80% from the highs in January, up over the $800 price level. It has failed to sustain any upside momentum, rallies continue to be sold by the bears. This is something that has been seen across the other cryptocurrecies, not just Zcash. The market continues to search for a bottom.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 33 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Pantera Capital’s CIO Predicts 10x Growth in Next “Huge” Crypto Bull Run

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Bull pattern

Joey Krug, who is the co-chief investment officer at Pantera Capital, believes cryptocurrency prices have bottomed or at least come close to it, but that doesn’t mean institutional capital will flood the market right away. Pantera Capital, which is a crypto investment fund that oversees approximately $700 million in AUM, participated in Bloomberg’s recent crypto conference in which Krug gave the temperature of the market.

While the bitcoin price may have bottomed, it has been stuck in a trading range, something that Krug doesn’t expect will change until a couple of catalysts take hold. The market drivers will be two-pronged, including the scalability of decentralized apps and the high cost of converting fiat into cryptocurrencies, the latter of which Krug expects is “going to change a lot over the next six to nine months.”

Pantera has been backing blockchain startups that are designed to solve the scalability issue. For instance, while the Bitcoin network can handle seven transactions per second (TPS) compared to “tens of thousands” TPS for Visa and Mastercard, Krug isn’t convinced that Bitcoin will ever reach a similar capacity. “But I do think we will see blockchains as fast as Visa or Mastercard in the next couple of years,” he added.

Incidentally, Spencer Bogart, who is a partner at Blockchain Capital, a crypto and blockchain investment firm that is similarly based in San Francisco, seems to be focused on a similar theme, saying today –

Meanwhile, Pantera’s Krug pointed out that to convert fiat to crypto on U.S.-based crypto exchange Coinbase, the cost is 150-400 basis points via a debit card or ACH bank transfer. “I think within the next year, that will be down to 50 basis points,” said Krug, adding: “Maybe not Coinbase, maybe some upstart.” For instance, the proliferation of crypto trading institutions like Bakkt and Fidelity should drive costs lower.

Market Rally

Fidelity’s move into crypto custody, meanwhile, didn’t make a splash in terms of prices because these days the market is more interested in “actual adoption,” a phenomenon that first requires scalability. While real scalability may remain a couple of years away, that doesn’t mean investors need to wait that long for the next Bitcoin rally. “We could see a rebound before then, but I think that’s going to be the real catalyst that drives the huge next bull run in my opinion,” said Krug, adding: “The crypto space overall [could grow] a good 10x from here.”

Pantera’s bitcoin fund has been performing similarly to the BTC price, while the broader digital asset fund is down more severely as investors flee altcoins and flock to bitcoin as a safe haven. Meanwhile, Pantera Capital is in the process of raising a $175 million crypto fund, the first close for which occurred over the summer and the next close for which is expected by year-end.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 69 rated postsGerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.




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