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By Kate Robertson, Writer
The AdvisorShares Poseidon Dynamic Cannabis Exchange Traded Fund (ETF), which is managed by the Paxhia sibling founders of California-based cannabis hedge fund Poseidon Investment Management, is shutting down less than two years after launching.
The move reflects the multiple headwinds facing the industry – such as falling wholesale prices and the slow pace of federal reform – as well as dwindling investor interest in marijuana stocks.
The ETF’s final day of trading will be Aug. 25, according to a notice on the fund’s website.
A statement of additional information published to the site said the actively managed fund will liquidate its assets and distribute the proceeds to shareholders on Sept. 1.
The price of the ETF has decreased by nearly 90% since it launched in November 2021 on the New York Stock Exchange (NYSE) Arca under the ticker symbol PSDN, declining from $9.33 to approximately $1 in recent months.
That’s an even steeper drop than the Pure US Cannabis ETF (MSOS), another actively managed ETF under the Maryland-based investment firm AdvisorShares umbrella, which declined by about 84% over the same period.
Morgan Paxhia, co-founder and managing director of Poseidon Investment Management, told MJBizDaily via email that the fund is another casualty of dwindling investor interest in the cannabis industry.
Siblings Morgan and Emily Paxhia founded Poseidon Investment Management in San Francisco in 2013.
“While we continue to see a bright future for this industry, the PSDN fund is not immune to the broader macroeconomic environment and, more specifically, the dramatic shift in investor sentiment that has impacted the cannabis industry,” he said.
Kate Robertson can be reached at kate.robertson@mjbizdaily.com.
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