Medical Cannabis Monthly Report | February

10 February 2022


Medical Cannabis ETF Key Takeaways

Following an unpopular ban of CBD flower in France announced on New Years’ Eve, French high courts have suspended the government’s latest effort to curb the proliferation of CBD in France. [1] The suspension provides relief to a growing industry where roughly three-quarters of all revenue is derived from flower sale.

A study conducted at UChicago [2] found evidence that CBD can inhibit infection by the Covid-19 virus in human cells and in mice. The study was based on a population of patients currently using FDA-approved drugs for treating epilepsy. The anti-inflammatory effects of CBD help in slowing down the spread of Covid-19 in the human body by inhibiting the virus’ ability to replicate. A clinical trial would be necessary to determine absolute results but the research is highly encouraging for the development of the nascent pharmaceutical cannabinoid industry.

2021 was a strong year for cannabis proliferation in the United States and the numbers most dear to lawmakers are starting to shine through. Newly legal adult use programs in Massachusetts collected over $74M in excise taxes in the second half of 2021 alone. [3] Likewise, Arizona reported $196M of taxes collected from cannabis sales in 2021. [4]

Latest numbers from Canada show that almost C$4B has been collected in direct taxes since legalization 3 year ago. [5] The industry which services about 38M Canadians now employs over 43,000 people directly and another 88,000 in indirect capacity. The Deloitte study has assessed that cannabis has contributed $43.5 billion to the country’s economy since legalization in 2018.

US legislators continue their struggle in Congress with the SAFE Act approved in the House of Representatives for the sixth time. [6] The SAFE Act is widely thought of as the best option for incremental proliferation in the United States. There is continued momentum in the US to move incremental cannabis legislation along.

Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product.

Macro Outlook

Looking into 2022 there are a few major trends to watch for; Incremental proliferation in the United States, the development of an adult use industry in Europe, validation of health benefits of pharmaceutical cannabinoids, and the rightsizing of the Canadian cannabis marketplace. Momentum is on the side of the industry as legislators give in the demands of the populace and become more accepting. Positive moves on CBD and THC by regulators of the UN and EU have been instrumental in moving legislation forward in many geographies.

We have covered the US and Canadian market in detail over the years. Legislative momentum in the United States is positive and incremental victories are coming on a state-by-state basis as well as a on a corporation-by-corporation basis. Canada on the other hand has now developed a strong adult-use market with different frameworks in each province, providing foreign observers with plenty of business learnings for efficient implementation in new geographies.

Europe is moving along quickly with Malta becoming the first nation of the European Union to legalize adult use cannabis. [7] In the coming year we are most looking forward to a legislator led effort in Germany and a populace led referendum in Italy which are two leading European economies which will cause ripples throughout the EU. A domino effect is expected throughout the EU as the free movement of people and goods will help develop strong diversified supply chains for the cannabis industry.

Lastly, the pharmaceutical cannabinoid industry has attracted a lot of attention in 2021 with some major M&A news around GW Pharmaceuticals and Arena Pharmaceuticals. Big pharma such as Pfizer has dived into the space and is now owning the research and development required to take pharmaceutical cannabinoids to the next level. [8] This accompanied by good news anecdotes such as CBD’s potential to fight off the Covid19 virus is becoming a major topic of interest for drug makers and physicians alike. [9] In 2022, we look forward to more M&A in the pharmaceutical space and continued scientific based evidence of health benefits obtained from the over 120 cannabinoids that have been identified so far. [10]

The Medical Cannabis ETF Performance Table (As of 31.01.2022)








The Medical Cannabis and Wellness UCITS ETF (Acc)








Medical Cannabis and Wellness Equity Index (NTR)








Performance before inception is based on back tested data. Back testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such strategy would have been. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. Please note that all performance figures are showing net data. 


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