The first-ever psychedelics ETF will launch next week, backed by a Canadian fund manager

<p><img src="https://static4.businessinsider.com/image/600b1c5fbc6a6a0012f4a22b-2000/AP20266730618051.jpg" border="0" alt="psychedelics magic mushrooms psilocybin" data-mce-source="PETER DEJONG/ASSOCIATED PRESS" data-mce-caption="FILE - in this Aug. 3, 2007, file photo magic mushrooms are seen in a grow room at the Procare farm in Hazerswoude, central Netherlands."></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><ul><li aria-level="1"><strong>Canada-based Horizons ETF Management is launching the first-ever psychedelics ETF.&nbsp;</strong></li><li aria-level="1"><strong>The Horizons Psychedelic Stock Index ETF (PSYK) will begin trading on the NEO exchange next Wednesday. </strong></li><li aria-level="1"><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell'utm_source=markets&amp;utm_medium=ingest'utm_source=markets&amp;utm_medium=ingest'utm_source=markets&amp;utm_medium=ingest'utm_source=markets&amp;utm_medium=ingest'utm_source=markets&amp;utm_medium=ingest"><strong>Sign up here for our daily newsletter, 10 Things Before the Opening Bell</strong></a><strong style="color: #222222;">.</strong></li></ul><hr><p>The first-ever psychedelics ETF will begin trading on the Canadian NEO exchange next Wednesday, giving investors exposure to publicly-traded companies focused on the development of therapeutic solutions that utilize psychedelics.&nbsp;</p><p>Canada-based Horizons ETF Management <a href="https://www.newswire.ca/news-releases/horizons-etfs-to-launch-world-s-first-psychedelics-focused-etf-834587139.html">announced Friday</a> that it filed its final prospectus to launch the Horizons Psychedelic Stock Index ETF (PSYK).</p><p>"PSYK will be the world's first exchange traded fund ("<strong>ETF</strong>") focused on the emerging psychedelics opportunity led by life science and pharmaceutical companies," Horizons ETFs said Friday.</p><p><a href="https://www.businessinsider.com/magic-mushrooms-depression-treatment-ssri-alternative-2019-2">Small studies</a> have found that psychedelic compounds, such as psilocybin, when administered in a clinical setting, have the potential to reduce symptoms of anxiety, <a href="https://www.eurekalert.org/pub_releases/2020-11/jhm-ptw110320.php">depression</a>, addiction, and post-traumatic stress disorder. <br><br>PSYK will track the <a href="https://www.solactive.com/indices/'index=DE000SL0B7J8">North American Psychedelic Stock Index</a>, which is owned and operated by Horizon ETFs. German-based Solactive AG is the independent calculation agent for the index.&nbsp;</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/investing-strategy-for-stocks-bonds-blackrock-cio-rick-rieder-interview-2021-1" data-analytics-position="3" data-analytics-module="">BlackRock bond chief Rick Rieder says investors must think 'dramatically differently' in 2021. Here's what he's bought and sold as he anticipates explosive growth this year.</a></em></p><p>Horizons ETFs launched the world's first Cannabis-focused ETF in 2017, and CEO Steven Hawkins says he sees many similarities between that industry in 2017 and the psychedelic industry now.&nbsp;</p><p>"After decades of restrictions, recent policy changes and exemptions in Canada and the United States have allowed for increased research in the therapeutic application of psychedelic compounds, and the potential to create an entirely new marketplace for drugs derived from psychedelics," said Steve Hawkins, President and CEO of Horizons ETFs.&nbsp;</p><p>In November 2020, Oregon became the first US state to <a href="https://www.businessinsider.com/oregon-measure-109-live-vote-count-results-2020">legalize psilocybin</a> for therapeutic uses. Proponents of the legislation say the bill will open the door for more research into psilocybin's therapeutic benefits. <a href="https://www.businessinsider.com/oregon-first-ever-state-to-legalize-psilocybin-for-therapeutic-use-2020-11">But researchers say state-level legislation won't make their efforts easier and legalization is moving faster than science</a>.&nbsp;</p><p>&nbsp;</p><p><a href="https://markets.businessinsider.com/news/stocks/psychedelic-etf-horizons-stocks-launch-shrooms-psilocybin-therapeutic-neo-exchange-2021-1-1029995086#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/economist-weighted-voting-could-help-save-us-democracy-2018-5">A top economist explains how weighted voting could change democracy</a></p>
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