By Sheeba M. | June 4, 2026
Cannabis ETF Rally: MSOS Breaking Through Resistance
The cannabis ETF landscape is heating up as investors rotate back into high-conviction plays. MSOS, which tracks the largest pure-play U.S. cannabis operators, has broken through a key technical barrier that hasn’t been crossed since 2021. This move signals renewed confidence in the sector’s regulatory tailwinds.
What’s Driving the Move
Three factors are converging: First, the Senate’s ongoing discussions about federal cannabis legalization are gaining real traction—not just noise. Second, state-level tax revenue from cannabis sales reached $3.6 billion in 2025, underpinning the fundamental business case for MSOs. Third, institutional investors are finally getting comfortable with cannabis holdings after years of compliance uncertainty.
The top holdings in MSOS include Curaleaf (CURLF), Trulieve (TRSSF), and Greenthumb Industries (GTBIF). Each of these names has seen volume surge as hedge funds add positions ahead of what many expect to be a pro-cannabis administration shift in regulatory priorities.
The SAFE Banking Act Wild Card
If the SAFE Banking Act passes—which looks increasingly likely—cannabis companies will finally access traditional banking services. That’s game-changing for margins and operational efficiency. Right now, most MSOs operate in all-cash environments, dragging on profitability. Banks waiting on the sidelines will flood into the space once SAFE passes.
Watch for next week’s House committee vote. If it clears, expect a 5–10% pop across MSOS and individual names like Verano Holdings (VEOD).
Sources
- U.S. Senate Cannabis Policy Updates — Recent federal discussions on legalization timelines
- Multi-State Cannabis Tax Revenue Report — Q1 2026 state collections data
- SAFE Banking Act Tracking — Current legislative status and committee schedule
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