Horizons ETFs CEO Steve Hawkins sat down with Benzinga to discuss the listing, which brought in approximately CA$25 million ($19.4 million) in the first week since the launch.
The passive ETF provides exposure to some of the most pivotal companies in the psychedelics space, including Compass Pathways (NASDAQ:CMPS), MindMed (NEO:MMED) (OTCQB:MMDF), Cybin (NEO:CYBN), Field Trip Health (CSE:FTRP) (OTCQB:FTRPF), Revive Therapeutics (CSE:RVV) (OTC:RVVTF) and Mind Cure Health (CSE:MCUR).
BZ: What prompted Horizons ETFs to launch the fund?
SH: We've been following this space since late last summer, I would say late Q2 or early Q3. It coincided with a couple of big listings on the NEO Stock Exchange where MindMed listed its IPO and then Cybin listed its RTO. It was really those two public offerings that created this genesis for us to be able to create a diversified portfolio of psychedelics stocks that we felt could support an ETF.
What makes this a special moment for the psychedelics sector?
After we launched [Horizons Marijuana Life Sciences Index ETF] (TSX:HMMJ) in 2017, I wasn't sure if there was ever going to be a new novel, completely out-of-the-box sector -from an equity perspective- that people would potentially want to get access to.
We've been waiting for something like that to happen, and then with psychedelics, the rules sort of changed, the government started providing exemptions, state level approval of certain pre-narcotic drugs. It sort of created an opening for a lot of the life …