The Psychedelics Industry Has Surmounted Every Hurdle In ’21
When historians of the future look back on the year coming to a close, they might partially characterize it as the year when psychedelics started to enter the mainstream of capitalism. Though psychedelics cannot be purchased at local dispensaries and your doctor cannot write you a script for psilocybin, LSD or another psychedelic, significant progress was made in the quest to bring these alternative treatment modalities to the market in ’21.
A Successful Transition From ’20 To ‘21
Those who follow the progress of psychedelics insist ’20 was the year when psychedelics gained traction in the mainstream media. The year coming to a close is when psychedelics businesses made headway in expanding their territory and gaining ground in the context of raising capital to finance operations. In short, we are all bearing witness to a brand new industry developing before our eyes. This is a truly historic time to be living as we are on the cusp of psychedelics becoming a mainstream treatment modality in ’22 and beyond.
Psychedelics investors can now buy and sell shares of publicly traded psychedelics companies with a mere click of a button. Though the sector as a whole took a slight step back in the second half of the year, it can be said without the slightest doubt that 2021 was a win for the overarching sector as a whole. It might not be long until psychedelics disrupt the mainstream of the medical industry, shifting the paradigm toward a new form of mental health treatment.
Psychedelics Stocks And ETFs Go Mainstream
The year coming to an end will be remembered for the pandemic yet it is also notable in that it is the year when investors obtained widespread access to a slew of coveted psychedelics stocks and ETFs. By the time October rolled around, investors had nearly 50 psychedelics stocks to choose from. Exactly nine of those stocks are available on United States exchanges in the NYSE and NASDAQ.
Though some American investors are unaware of it, ’21 also marked the year when psychedelics ETFs hit the mainstream. The Defiance ETF, dubbed Defiance Next Gen Altered Experience ETF, features the likes of Mind Medicine Mindmed, Atai Life Sciences, Forian, Cronos Group, Compass Pathways, Gh Research and Numinus. The Defiance ETF trades under the symbol of PSY.
There is also a Horizons Psychedelics ETF traded on the NEO under the symbol of PSYK. This is the first-ever ETF to completely focus on the psychedelics industry. The ETF hit the Canadian stock exchange toward the end of the year’s first month.
An Infusion Of Capital
Psychedelics startups are launching both privately and publicly. Private funding for psychedelics businesses nearly doubled in ’21. CB Insights reports equity funding in the private psychedelics realm hit nearly $600 million at the end of October. All in all, 45 private deals were made. Industry experts insist there will be 55+ deals by the year’s end, totaling an impressive $724 million. These figures are a considerable jump from those in ’20, when private funding was a mere $358 million.
Even investment banks are getting into the mix, launching coverage of psychedelics businesses in ’21. This is a bullish indicator for the sector as it indicates the industry’s elite are interested in financing psychedelics operations. Examples of the top investment banks to enter the foray include Roth Capital, Citigroup, Credit Suisse, RBC Capital markets, Maxim Group and Canaccord Genuity.
