Cannabis ETFs: What’s Next For Marijuana Investment & Policy In View Of Ongoing Legal Hurdles?

Hey there, Benzinga Cannabis community! It’s Maureen Meehan here with today’s roundup of the latest weed news.The Benzinga Cannabis Capital Conference in Chicago is still in full swing today, offering insights from some of the industry's biggest players. The conference was buzzing with discussions around cannabis ETFs and the challenges U.S. investors face with federal regulations.

As always, we're digging into the big stories that are shaping the cannabis space—from court rulings on employee retention credits to some surprising stats about cannabis users’ health habits. Let’s dive in and look at what’s happening today! 🌿

🌱 EXCLUSIVE: Cannabis ETFs: Investor-Friendly And Full Of Growth Potential

During a lively panel at the 2025 Benzinga Cannabis Capital Conference in Chicago, two cannabis ETF leaders shed light on why U.S. investors are turning to these funds for sector exposure.

AdvisorShares COO Dan Ahrens pointed out how tough it is for U.S. investors to buy cannabis stocks directly, especially when many don’t trade on the NYSE or Nasdaq. His solution? ETFs. “With ETFs, it’s a convenient purchase, a basket of stocks,” Ahrens said, and with cannabis in the U.S., this becomes super important. The AdvisorShares Pure US Cannabis ETF (NYSE: MSOS) has gained attention as one of the top ways for people to dip their toes into cannabis investments.

On the other hand, Tim Seymour, CIO of Seymour Asset Management, argued that cannabis ETFs are helpful, though somewhat ironic, given the volatile nature of the cannabis market. Seymour sees potential even without federal reform, focusing on companies that are stable and primed for the long haul, saying, “Find companies that are operating and making it through.”

So, whether you’re a fan of federal reform or just looking for solid players today, cannabis ETFs seem to be the way to go. 📈

💼 Legal Hurdles: Marijuana Companies Blocked From ERCs

In some disappointing news for cannabis businesses, a federal court recently ruled that marijuana companies are ineligible for COVID-era employee retention credits (ERCs) due to IRS code Section 280E. This section of the tax code, which penalizes cannabis businesses, now stands in the way of companies receiving refunds they would typically qualify for.

The U.S. District Court for the Western District of Washington decided that the IRS rule applies to all tax credits, including the ERCs. In simpler terms: cannabis companies still can’t catch a break when it comes to certain government incentives.

Stay tuned for further updates on this one—there could be more twists to come. 💸

💰 Political Play: Could Federal Budget Cuts Push States Toward Cannabis Legalization?

As the Trump administration pushes for federal budget cuts, Rep. Dina Titus (D-NV) sees a silver lining for cannabis legalization. She told the NCIA Voice of Cannabis podcast that states, facing pressure to pay more for programs like SNAP and Medicaid, might turn to cannabis legalization as a way to generate new tax revenue.

“That may push them in the direction of legalizing marijuana, to some extent, so they can get that tax revenue generated,” Titus said.

If this theory holds, the future of cannabis might look a little greener in more states. 🌿💵

⚖️ DEA's Obstruction: Marijuana Research Delayed

🔬A bombshell has dropped on cannabis research, with documents revealing that the DEA’s Diversion Control Division has been actively obstructing scientific studies on marijuana. MMJ BioPharma Cultivation has been blocked from developing pharmaceutical-grade cannabis for over 2,300 days due to delays, denials, and destruction of research applications.

While the DEA claims to support bona fide research, it seems that they've been doing the opposite. According to internal guidance, they’re required to expedite Schedule I research, but it looks like they've been blocking progress instead. The truth behind the DEA’s actions could have massive implications for the future of cannabis drug development.

🌍 GrowGeneration Goes Global: Expansion Into Europe and Costa Rica

GrowGeneration Corp. (NASDAQ: GRWG) is taking its game international with a new distribution agreement in the European Union and Costa Rica. This expansion comes at a crucial time as Germany and Portugal push forward with cannabis legalization. The company is aiming to provide high-quality hydroponic and organic gardening products to cultivators across Europe, including in Malta, Luxembourg, and the Netherlands.

With cannabis reform accelerating in the EU, GrowGen is strategically positioning itself to meet the demand for advanced cultivation products. It's not just about the EU though—the company is also eyeing growth opportunities in Uruguay and Costa Rica, tapping into South America’s emerging cannabis market. 🌍🚀

🏋️‍♂️ Breaking Stereotypes: Cannabis Users Are Fitness Buffs?

Forget what you think you know about cannabis consumers. According to a new survey by NuggMD, marijuana users are more likely to exercise than hit the drive-thru for fast food. The data shows that 27.4% of cannabis users exercise daily, compared to just 6.1% of alcohol drinkers.

In fact, cannabis users are nearly five times more likely to exercise regularly than to indulge in fast food. Who knew? It seems like the stereotypical “lazy stoner” image may need a bit of an update! 🏃‍♀️🥦

🧠 Medicinal Cannabis for OCD: A Glimmer of Hope

While the use of cannabis in treating Obsessive-Compulsive Disorder (OCD) remains under research, there’s promising real-world evidence suggesting that it could improve patients' quality of life. According to a study published by MDPI, many people with OCD have found success with medicinal cannabis despite limited clinical trials.

As access to cannabis-based medicinal products (CBMPs) increases, particularly in countries like the UK, more and more patients are turning to cannabis to ease their symptoms. It's a tricky area, though, with strict regulations and patients often having to fund their own treatment.

Still, this could be an exciting breakthrough for those struggling with OCD. 🌱💡

🌿 That's it for today’s roundup! We’ve got some exciting things in the works, so keep an eye out for more tomorrow when we will wrap up coverage of the Benzinga Cannabis Capital Conference in Chicago. Stay informed, stay curious, and stay high on knowledge! 💚

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