Cannabis ETFs, like AdvisorShares Pure US Cannabis ETF MSOS and its leveraged counterpart MSOX, are struggling amidst regulatory uncertainty and a downturn in the cannabis market. However, potential rescheduling of cannabis under federal law and pro-cannabis political momentum offer a glimpse of hope for these funds and the broader market.
Multi-state operators (MSOs) in the US cannabis industry are demonstrating financial resilience by cutting costs and improving efficiency despite market pressures. Most leading MSOs reduced their cost of goods sold and administrative expenses in Q2 2024, showcasing their ability to navigate challenges like lower wholesale prices and increased competition.
