Financial firm Innovation Shares announced earlier this month that it has launched the Cannabis ETF, a new exchange-traded fund for investing in the cannabis industry. The passively-managed ETF is now available to investors and is trading under the ticker symbol THCX.

Matt Markiewicz, the managing director for Innovation Shares, said in a press release that the new investment fund will be active in all areas of the legal cannabis industry while avoiding some investments of similar EFTFs.

“As a pure-play cannabis ETF, THCX focuses on companies in the legal marijuana, CBD, and hemp industries – the portfolio does not rely on alcohol or tobacco stocks to provide exposure to this burgeoning global growth story,” said Markiewicz. “Investors entering the cannabis space have demanded a diversified, liquid and cost-efficient vehicle to invest in the ‘green rush’ and we are ready to deliver on that ask.”

Innovation Shares is known for sponsoring unique thematic ETFs. The Cannabis ETF, which is listed on the NYSE Arca exchange, tracks the Innovation Labs Cannabis Index, a rules-based portfolio that rebalances on a monthly basis. The index currently consists of 35 stocks anticipated to benefit from a rise in the cannabis market, which could reach $630 billion by the year 2040, according to some estimates.

“With several regulatory catalysts on the horizon in the U.S. and abroad, the current cannabis environment presents an exciting opportunity for investors. One area which has witnessed explosive growth since the signing of last year’s U.S. Farm Bill is the hemp-derived CBD industry,” Markiewicz added. “Several of the companies in the portfolio are actively participating in this CBD boom by cultivating hemp, providing extraction services or by using CBD for applications in the pharmaceutical, health and consumer wellness markets.”

Sector Shows Potential for Global Growth

In an interview with CNN Business, Markiewicz said that he expects the cannabis sector to be a good investment even without the expected eventual legalization of cannabis at the federal level in the United States.

“Clarification on federal regulations in the US would be a watershed moment. But this is a global story. It’s not just about the US,” Markiewicz said. “Cannabis companies are looking [for opportunities]around the world, particularly in Europe.”

He also noted that the best investments in the cannabis industry include firms that don’t already have investments from major corporations.

“You want to own the companies that are going to get bought,” Markiewicz said.

Innovation Shares’ Cannabis ETF began trading on July 9 at a price of $24.84 per share. On Tuesday, the fund closed at $22.37, up 19 cents from the previous day.

