AdvisorShares Impacts Cannabis Investment Landscape with New Executive Order Response

AdvisorShares Takes a Stand on Cannabis Reclassification

On December 18, 2025, AdvisorShares, a prominent sponsor of actively managed exchange-traded funds (ETFs), made headlines with their response to a significant executive order issued by President Donald J. Trump, which aims to advance the reclassification of cannabis under the Controlled Substances Act. As Dan Ahrens, Managing Director and portfolio manager of the AdvisorShares Pure US Cannabis ETF (ticker: MSOS), expressed, this marks a pivotal moment for cannabis regulation in the United States.

A Clear Signal on Cannabis Policy

Ahrens articulated that this executive action constitutes the clearest and most coordinated signal from federal authorities regarding cannabis policy witnessed to date. The move signifies a shift in approach, transitioning from mere speculation to substantial engagement by top government officials. This change signals that medical applications, economic realities, and direct industry conversations are finally being acknowledged in the realm of federal policy.

Advancing the Conversation About Cannabis

While the executive order does not resolve all issues surrounding cannabis regulations, it represents a meaningful advancement in discussions about potential federal reforms. It is a significant milestone for the over 400,000 cannabis workers in the U.S., indicating a potential shift away from Schedule I classification. Ahrens emphasizes that this reclassification can fundamentally change aspects related to taxation, research access, and capital formation for U.S. cannabis companies.

The implications of this executive order extend beyond mere regulatory adjustments; they convey a message of recognition for the burgeoning cannabis industry, which has faced various hurdles due to its previous classification.

AdvisorShares' Role in the Cannabis ETF Market

The AdvisorShares Pure US Cannabis ETF (MSOS) holds the distinction of being the largest cannabis ETF and the first to provide dedicated exposure to U.S. cannabis companies, particularly multi-state operators. The ETF aligns with AdvisorShares' commitment to engaging with companies involved in the cannabis sector, allowing investors to capitalize on the potential of this rapidly evolving industry.

In addition to MSOS, AdvisorShares has launched other funds, including the AdvisorShares Pure Cannabis ETF (ticker: YOLO), which offers global exposure to cannabis investments. Both funds are actively managed by Ahrens, enhancing their adaptability to the market’s dynamics.

The Future of Cannabis Investments

As the landscape shifts due to regulatory updates, the importance of investor awareness cannot be overstated. It is essential for individuals considering investments in this sector to remain informed about ongoing changes and potential risks. Ahrens assures investors that despite the progress represented by the executive order, challenges remain. The cannabis sector still navigates a complex terrain of federal and state regulations that can impact operations and access to financing.

Furthermore, the inherent risks related to cannabis investments necessitate a careful examination of each fund’s objectives, charges, and potential risks, all detailed comprehensively in the corresponding prospectus.

Conclusion

AdvisorShares' response to the executive order not only showcases their leadership in the cannabis investment arena but also reflects the broader shifts occurring within the sector. As discussions around reclassification and federal policy evolve, it is essential for investors to remain engaged and informed about these developments, as they hold promise for a burgeoning industry poised for significant growth. To learn more about AdvisorShares and their investment strategies, visit their website or tune into their live sessions such as 'AlphaNooner,' where experts discuss relevant market trends and topics. The cannabis industry stands on the precipice of transformation, and with it, the potential for investors to thrive in an evolving market landscape.