Holy smokes!

The cannabis market just expanded and exhaled.

And the result is not smoke but rather exchange-traded funds.

As the financial markets continue to embrace cannabis revolution, the first marijuana-backed securities (exchange traded funds) are coming to the market.

Global X has filed plans to bring a marijuana ETF that gives investors exposure to marijuana and marijuana-related stocks. The Global X Marijuana ETF will invest in the stocks and depositary receipts of companies that derive at least half of their revenue, operating income or assets from the marijuana industry, which is fairly widely defined in the standards set forth by the fund’s prospectus as a “value chain.”

The marijuana industry value chain encompasses companies that legally grow and distribute products that are sourced fro cannabis or industrial hemp; that provide financial services related to the industry such as insurance, property leasing and investments, etc.

The filing did not include a ticker, expense ratio or listing exchange.

According to the prospectus, companies that expect half of their revenue, operating income or assets to be related to the marijuana industry can also be included in the index, but their aggregate weight will be capped.

Currently, there are two marijuana-focused ETFs are currently already trading on U.S. exchanges – the $1.1 billion ETFMG Alternative Harvest ETF (MJ) and the recently launched $56 million AdvisorShares Pure Cannabis ETF (YOLO).

ETF.com reported that several other ETF providers are also looking to launch funds, including Amplify, Innovation Shares and Cambria.

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