Ohio has become the 24th state to legalize recreational use of marijuana, following its approval for medical use in 2016. While this move could potentially benefit the cannabis industry, pot stocks traded with mixed results early on Wednesday.
In premarket trading, the AdvisorShares Pure US Cannabis (ticker: MSOS) exchange-traded fund experienced a decline of 2.8%. Curaleaf Holdings (CURLF) also saw a slight dip of 0.3%, while Tilray Brands (TLRY) managed to advance by 1.1%.
Although the legalization of recreational marijuana in Ohio marks a significant milestone, at least four more states are expected to have the issue on their ballots next year. These developments signify a growing trend towards increased acceptance and normalization of marijuana use nationwide.
However, the AdvisorShares ETF has encountered challenges this year due to its concentrated exposure to a few key names. There are concerns that potential redemptions could pose operational difficulties for the fund. Despite this, the fund experienced a notable increase in early August after President Joe Biden expressed consideration for rescheduling marijuana at the federal level—a significant step towards decriminalization.
In addition to marijuana legalization, Ohio also included abortion rights in its state constitution. Democrats celebrated multiple victories in Virginia’s legislature and re-elected Andy Beshear, the Democratic governor of Kentucky. These wins are seen as potential indicators for the upcoming presidential election, where Republican Donald Trump is widely expected to challenge incumbent Joe Biden.
Overall, Ohio’s decision to legalize recreational marijuana adds to the ever-growing landscape of cannabis acceptance in the United States. While the impact on pot stocks remains mixed, the nation continues to witness shifting attitudes towards marijuana use and its potential economic benefits.