Some Investors are More Comfortable with Marijuana Investments Than Bitcoin

ETFs for cryptocurrencies were too risky for Sam Masucci, Group founder and CEO of ETF Managers. However, he did launch a marijuana ETF — and he’s cashing in.

Marijuana investments have become a norm in the markets and Bitcoin has experienced its ups and downs. This had led to one investor favoring weed over bitcoin. In an interview with CNBC’s fast money Masucci says,

“We see this as a tremendous investment opportunity.”

In late December, ETF group managers launched the Alternative Harvest ETF. It covers around 30 domestic and international stocks. From $5 million in assets, the ETF has grown to around $500 million in under a month from marijuana investments. Masucci goes on to say that “the business is growing, the companies entering it are growing.”

Pot ETFs to light up the market? from CNBC.

Marijuana market volatility is okay, not Bitcoin

Even after Attorney General Jeff Sessions removed protections for state-run marijuana companies, Masucci has accepted the volatility in the marijuana markets. This was something he wasn’t willing to do with bitcoin. He says,

“We can’t explain the volatility within bitcoin. Until we are comfortable with it and we know how to trade it, we don’t see ourselves getting involved.”

A high percentage of Alternative Harvest’s holding are companies based in Canada or other countries. Marijuana legalization in Canada is on the horizon and regulations are less strict. American companies selected by the ETF are the only ones “best suited to benefit from the cannabis boom.” Masucci says he has grand hopes for the U.S. cannabis industry,

“Twenty-eight states now have approved medical marijuana, 16 more have it on the docket for this year.”