This article was originally published on ETFTrends.com.
The ETFMG Alternative Harvest ETF (MJ) rallied 1.73 percent on Tuesday after New Jersey politicians revealed plans to legalize the recreational use of marijuana in the state.
Democratic Governor Phil Murphy announced a bill that would allow for the adult-use of marijuana as well as allow municipalities that are home to a cultivator or manufacturer to collect the revenue from a 2 percent tax on the product within their jurisdiction.
"Legalizing adult-use marijuana is a monumental step to reducing disparities in our criminal justice system," Murphy said in a press release. "After months of hard work and thoughtful negotiations, I'm thrilled to announce an agreement with my partners in the Legislature on the broad outlines of adult-use marijuana legislation."
By the middle of Tuesday's trading session, nine of MJ's top 10 holdings were gainers. Specifically, Cronos Group gained 4.5 percent, Canopy Growth rose 3.7 percent, Tilray was up 3.4 percent and Aurora gained 2.6 percent.
Related: ETFs, ETPs Gathered $44.31B in Inflows Globally During February
"I believe that this legislation will establish an industry that brings fairness and economic opportunity to all of our communities, while promoting public safety by ensuring a safe product and allowing law enforcement to focus their resources on serious crimes," said Murphy.
Assembly Speaker Craig Coughlin said March 25 was a “good target date" in terms of bringing the bill to the state Legislature for vote.
“But I think it’s most important that we get this right," the Assembly speaker said. "We’re doing something that’s a seismic shift in public policy and we’re creating a new industry. I think that demands we get both of those things right.â€
If the bill passes and becomes law in New Jersey, the state's adult-use marijuana market would come under regulation by the Cannabis Regulatory Commission, which consists of five members appointed by the governor. The commission will have the authority to promote regulations and oversee licensing applications.
MJ is up 48.72 percent year-to-date after posting a loss of 21.77 percent in 2018.
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