ETFMG Alternative Harvest Hits $1B In Assets Under Management

US-traded cannabis ETF ETFMG Alternative Harvest ETF MJ – surpassed  $1 billion in assets under management on Dec. 4.

The news is disclosed Wednesday by ETF Managers Group LLC which manages the fund, launched in December 2017.

The fund has been trading on NYSE for less than three years, being the first cannabis-focused ETF to list in the United States.

Jason Wilson, ETFMG Cannabis Research and Banking, told Benzinga that “there are two key takeaways as it relates to MJ and the significance of achieving this milestone.”

Firstly, “the investors are understanding that the cannabis industry touches many verticals across many industries globally, such that there are multiples ways for companies to profit in the cannabis industry,” including cultivation and also verticals and ancillary opportunities, he continued.

“The second takeaway is that while there is a lot of momentum behind the cannabis industry at the moment,” Wilson said, adding that “with domestic and global catalysts continuously falling into place, there is also an understanding that legalization is just the first stop on the road to a mature industry.”

“A clear path forward for many cannabis-related businesses won’t be fully visible until we have not only legislation in place, but the regulatory framework to go along with it,” he disclosed.

As the investing landscape would “likely remain unpredictable difficult to navigate, and volatile for the foreseeable future,” a number of  advisors and investors are searching for “a diversified and global approach to investing in the cannabis industry.”

Wilson recently explained that MJ’s strategy relies on tracking the Prime Alternative Harvest Index, “which is designed to measure the performance of companies within the cannabis industry ecosystem benefiting from global cannabis legalization initiatives.”