The AdvisorShares Pure US Cannabis ETF (MSOS) touched its highest levels of 2026 this week, as capital rotates into plant-touching operators ahead of a June 29 DEA administrative hearing that could reshape the sector's tax and banking picture. As of May 31, MSOS posted a 103.7% one-year net asset value return, well ahead of the North American Marijuana Index's 36.9% gain and the S&P 500's 29.8%. The fund has also climbed 28% over the past three months even as the broader marijuana benchmark slipped roughly 1%, and it now manages $1.13 billion in assets as of June 5.
Trulieve Cannabis, MSOS' largest position at just over 30% of the portfolio, began trading on the NYSE under the ticker TRLV this week, a listing CEO Kim Rivers described as a "historic milestone." The company restructured to separate its medical cannabis operations from its adult-use business, a maneuver that made it eligible for a senior exchange listing in the first place - something multi-state operators have chased for years while stuck on over-the-counter markets. For dispensary operators watching from the sidelines, the mechanics matter as much as the headline: cleaner corporate structures, audited financials, and exchange-grade governance are now the price of entry for institutional capital, the same way a modern point of sale platform virginia dispensaries adopt becomes the backbone for compliance reporting and seed-to-sale accuracy at the store level. point of sale platform virginia
The DEA Hearing Nobody in the Industry Can Ignore
The upcoming hearing will examine whether marijuana products more broadly, not just state-licensed medical cannabis, should move to Schedule III. Proceedings are expected to run through mid-July. This follows an April decision by Acting Attorney General Todd Blanche to reclassify state-licensed medical marijuana into Schedule III, a move that eliminated tax penalties for licensed medical operators and let them deduct ordinary business expenses like payroll, rent and interest for the first time. That's the 280E problem in a nutshell: under the old Schedule I classification, cannabis companies couldn't deduct normal operating costs the way any other retailer can, which crushed margins and made real profitability nearly impossible for years. Trump's formal nomination of Blanche to serve as permanent attorney general has only added to the sense that this policy shift has staying power rather than being a temporary administrative quirk.
Uplisting Fever Spreads Across the Sector
Cresco Labs secured a $50 million revolving credit facility from Needham Bank this week, which CEO Charlie Bachtell called a "non-dilutive tool" for acquisitions and a step toward eventual uplisting to a senior exchange. AdvisorShares argues the broader rescheduling push could strengthen balance sheets, improve free cash flow, and open doors to institutional investors and banking services long closed to plant-touching businesses. Roth Capital went further, calling the rescheduling order "extremely favorable" for taxation, capital access and overall sector investability. Tilray Brands, though not held in MSOS, has signaled it may deploy proceeds from a recent at-the-market offering toward acquisitions tied to the same reform wave.
Where the Upside - and the Risk - Actually Sits
Trulieve gets the headlines, but it isn't where analysts see the biggest potential re-rating. Verano carries a 195% upside to its price target, followed by Jushi Holdings at 183% and Cresco Labs near 99%, according to Koyfin data cited by market watchers. Among the larger holdings, Green Thumb Industries shows 70% upside, ahead of both Trulieve and Curaleaf. Retail sentiment on platforms like Stocktwits runs "extremely bullish" for MSOS, Trulieve and Green Thumb, with high message volume across the board - a signal of enthusiasm, not certainty.
None of this changes the operational reality on the ground. Dispensaries still answer to state seed-to-sale tracking systems, compliant packaging rules, and lab testing requirements regardless of what happens in federal rescheduling proceedings. A favorable DEA outcome would ease tax burdens and banking access, but it would not touch state license caps, local zoning fights, or the day-to-day work of keeping COAs current and inventory shrinkage in check. Investors chasing the next uplisting candidate would do well to remember that market enthusiasm and store-level compliance discipline are two very different things - and only one of them keeps a license intact.