The AdvisorShares Pure US Cannabis ETF (MSOS) is trading at its highest levels of 2026, and the timing is not an accident. Investors are positioning ahead of a June 29 DEA administrative hearing that will examine whether cannabis products should move to Schedule III, and Trulieve's fresh listing on the NYSE has given the trade a face. As of May 31, MSOS posted a 103.7% one-year NAV return, well ahead of the North American Marijuana Index's 36.9% gain and the S&P 500's 29.8% return, with $1.13 billion in assets under management as of June 5.
Trulieve's move to the NYSE under the ticker TRLV is more than a symbolic upgrade. It reflects the operational restructuring multi-state operators have quietly pursued for years - separating medical cannabis lines from adult-use businesses to satisfy exchange listing standards that senior U.S. markets still enforce strictly. That kind of corporate surgery isn't cheap or simple; it touches entity structuring, tax reporting, and compliance recordkeeping across state lines. For operators managing inventory across multiple licenses, the back-end discipline required looks a lot like what compliance teams already do daily through platforms such as the metrc cannabis traceability system alaska, where every transfer, batch, and sale has to reconcile against state records. Trulieve CEO Kim Rivers called the listing a "historic milestone," and pointed to the federal decision to reclassify medical marijuana to Schedule III as a factor that helped clear the path. metrc cannabis traceability system alaska
Why the Rescheduling Fight Still Matters to Retail Economics
Here's the mechanism driving the enthusiasm: Section 280E of the federal tax code currently blocks cannabis companies from deducting ordinary business expenses - payroll, rent, marketing - because the plant remains federally controlled. When Acting Attorney General Todd Blanche moved state-licensed medical marijuana into Schedule III in April and opened the door to broader rescheduling, medical-only operators got relief from that tax penalty. The June hearing will decide whether adult-use cannabis gets the same treatment. That's not a small distinction for a multi-state operator running both medical and recreational storefronts under one roof; the tax bill on identical revenue can differ sharply depending on which side of that line a sale falls.
President Trump's decision to formally nominate Blanche as permanent attorney general has added another layer of confidence to the trade, since it signals continuity on the rescheduling track rather than a reset under new leadership.
Capital Access Is the Real Prize
Rescheduling talk tends to focus on tax deductions, but the bigger structural shift is capital access. Roth Capital called the rescheduling order "extremely favorable," citing benefits for taxation, capital markets access, and future uplistings. Cresco Labs' $50 million revolving credit facility from Needham Bank, secured this week, is an early example of what that looks like in practice - a non-dilutive financing tool CEO Charlie Bachtell says positions the company for eventual uplisting to a senior exchange. Banks that once avoided cannabis credit risk entirely are starting to underwrite it, which matters enormously for operators who've relied on expensive private debt or dilutive equity raises to fund store buildouts, wholesale inventory, and acquisitions.
Where the Upside Concentration Sits
Trulieve carries the largest weight in MSOS at roughly 30% of assets, but it isn't where analysts see the biggest gap between price and price target. According to Koyfin data, Verano (VRNO) shows 195% upside, Jushi Holdings (JUSHF) 183%, and Cresco Labs (CRLBF) nearly 99%. Among the larger holdings, Green Thumb Industries (GTBIF) stands out at 70% upside - notably higher than both Trulieve and Curaleaf, the world's largest cannabis company by revenue. Glass House Brands (GLASF) is the outlier with a projected 22% downside, a reminder that sector-wide enthusiasm doesn't lift every operator equally.
- MSOS gained 28% over three months while the broader marijuana benchmark fell about 1%
- The DEA hearing is expected to run through no later than July 15
- Schedule III reclassification currently applies to state-licensed medical marijuana, not yet adult-use products
- Uplisting to senior exchanges requires separating medical and adult-use operations in some cases, as Trulieve did
Retail sentiment on platforms like Stocktwits has run "extremely bullish" for MSOS, Trulieve, and Green Thumb, with heavy message volume across cannabis tickers. That kind of retail enthusiasm can move share prices quickly, but operators and compliance teams on the ground still answer to state regulators, seed-to-sale tracking mandates, and 280E's lingering effects on adult-use revenue until the July hearing produces an actual ruling. The stock rally is real; the regulatory outcome it's betting on is not yet decided.