Cannabis stocks soar across the board as historic House vote lures investors back to battered sector
Vote is just the first step in what is likely to be a lengthy process, according to partner in cannabis ETF MJ
Cannabis stocks rallied across the board Thursday, as investors returned to the beaten-down-sector with a fresh enthusiasm, following a historic House vote in favor of a bill that would lift the federal ban on weed.
The three biggest Canadian licensed producers – Canopy Growth, Cronos Group and Aurora Cannabis – soared more than 10%. And the ETFMG Alternative Harvest ETF MJ, +9.14% was up more than 6%, with 32 of its 36 components trading higher.
The move came even as the sponsors of the bill cautioned that the Senate was unlikely to take it up any time soon. The bill, which was introduced by House Judiciary Committee Chairman Jerrold Nadler, a New York Democrat, passed Wednesday by a 24-10 vote in favor. It includes provisions to expunge past criminal records and would introduce a 5% cannabis sales tax.
“The vote was mostly symbolic and is just the first step toward full legalization,” said Jason Wilson, banking and cannabis expert at the ETF. “But legalization will come eventually and there’s still a lot of money on sidelines looking to get into the space.”