Zero Fees, High Hopes: WEED ETF's Strategy To Capitalize On Impending Cannabis Rescheduling

Roundhill Investments has announced a fee waiver for its Listed Funds Trust Roundhill Cannabis ETF WEED. The ETF, which provides exposure to leading U.S. cannabis multi-state operators, will charge an all-in expense ratio of 0% until at least July 1, 2025.

WEED ETF Cuts Fees Amid Looming Rescheduling

Starting Monday July 1, the WEED ETF will drop its expense ratio from 40 basis points to zero, as per a filing submitted to the SEC last Thursday. This decision, aimed at capitalizing on the anticipated reclassification of cannabis to Schedule III supported by President Joe Biden. The rescheduling could potentially benefit the cannabis industry through reduced penalties and tax advantages, although it will not decriminalize cannabis.

Roundhill CEO Highlights Fee Waiver Impact

David Mazza, CEO of Roundhill Investments, emphasized the significance of this fee waiver. “While regulatory reform for the cannabis sector has been slower than anticipated, we believe that the upcoming reclassification to Schedule III can serve as a much needed catalyst for the space,” said Mazza. He added that the fee waiver is designed to make cannabis investing more accessible.

Read Also: IRS Confirms No Federal Tax Deductions For Marijuana Businesses Until Rescheduling Is Finalized

ETF Gains Amid Strong Market Demand

Since its inception on April 20, 2022, the Roundhill Cannabis ETF has faced challenges, losing 58% of its value, noted Bloomberg. However, it has seen a nearly 5% gain year to date. Despite market fluctuations, interest in cannabis ETFs remains strong. Bloomberg Intelligence reports 17 consecutive monthly inflows into cannabis and psychedelics ETFs, with $393 million invested this year alone.

MSOS ETF Recovery Highlights Cannabis Resilience

The resilience of cannabis investments is underscored by the recovery of the AdvisorShares Trust AdvisorShares Pure US Cannabis ETF MSOS amid broader economic fluctuations. This recovery, despite the pressures of a strengthening U.S. dollar, signals potential stabilization in the sector.

This backdrop reinforces the strategic timing of Roundhill’s fee waiver for the WEED ETF, offering investors a compelling option for investors anticipating positive momentum in the U.S. cannabis market.

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• Why The Time To Invest In U.S. Cannabis Stocks Is Right Now

Cannabis rescheduling seems to be right around the corner. Want to understand what this means for the future of the industry? Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.