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Written by Sheena Beronio

European savers will get the chance to invest in ETF or exchange-traded funds on the marijuana industry. The Canadian fund group Purpose Investments launched the Medical Cannabis and Wellness ETF last January 13. This will be Europe’s first time to have such product.

The fund is listed in Germany and is made available to investors from the United Kingdom, Italy, and Ireland. The Marijuana funds were initially made popular in North America despite having problems in profit last year.

The US-listed ETFMG Alternative Harvest, which is the world’s largest cannabis ETF, lost 28.5% last year. ETFMG Alternative Harvest has an asset of $673 million. The Horizons Medical Marijuana Life Sciences ETF of Canada, which is worth $327 million, lost 33.8%.

Purpose worked with the ETF issuer HANetf in this European launch. Purpose manages Canadian $8 billion as well as the Canadian $34.2 million Marijuana Opportunities Fund.

The fund charges 80 cents per €100. It’ll invest in public companies that have a license to operate on cannabis, hemp, and CBD or cannabidiol.

The medical cannabis industry has a huge potential to boom for investors, but Europe has always been restricted from the cannabis market for some reason.

“Medical cannabis is an emerging industry with huge growth potential and significant investor interest,” said Hector McNeil, co-founder, and co-chief executive at HANetf. “Up until now, European investors have experienced restricted access to the cannabis market.” 

He further added that he expects the product to kickstart from bankings, financial management institutions, and institutional investors. This financial stakeholder has always been a great supporter of the North America marijuana ETFs.