Why This Cannabis ETF Surged 34% Today

Shares of the AdvisorShares Trust AdvisorShares Pure US Cannabis ETF MSOS closed 34% higher in Thursday's session after President Joe Biden issued a statement on marijuana reform that includes a pardon of all prior federal offenses of simple marijuana possession.

Biden also called on governors to "pardon simple state marijuana possession offenses."

Additionally, the president said he has asked HHS Secretary Xavier Becerra and the attorney general to review how marijuana is scheduled under federal law, noting: "We classify marijuana at the same level as heroin — and more serious than fentanyl. It makes no sense."

Biden's statement sent several cannabis stocks higher toward the end Thursday's session and drove high volatility in cannabis-linked ETFs. 

The ETFMG Alternative Harvest ETF (NYSE: MJ) closed 19.6% higher, according to data from Benzinga Pro

The Listed Funds Trust Roundhill Cannabis ETF WEED closed up 38.8%. 

Photo via Shutterstock. 

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