Investors look at many variables when deciding which stocks to buy, including a company’s industry. If an industry is exhibiting high growth, stocks in that sector can gain value. It’s similar to how a rising tide can lift all boats, and that trend can play out for psychedelic stocks.
Data from Grand View Research suggests that the psychedelic drugs market will maintain an annualized 12.1% growth rate from now until 2030. That relatively high growth rate can lead to many winners in the stock market. The drugs themselves, however, have some pros and cons to consider. Some studies suggest that psychedelics can minimize anxiety, depression and headaches. However, there are notable risks, such as paranoia, psychosis and addiction, that come with withdrawal symptoms.
Regardless, the Trump administration’s apparent embrace of psychedelics has sparked both excitement as well as worries among those in the field. Just as taking psychedelics could be viewed as risky, it’s also risky to buy psychedelic stocks at the moment. However, the rewards could be massive, some experts say.
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Natalie Dolphin, co-founder and managing director of investor relations at HLTH Communications, believes in the opportunity. “Investing in psychedelics isn’t like jumping into a mature market. It’s like biotech 10 or 15 years ago. Most of the companies are still in early R&D stages, with long timelines and no guarantees. That means volatility is the norm, not the exception. But the upside? If even one or two of these therapies make it through clinical trials and get regulatory approval, it could be transformative for investors, let alone for patients.”
However, psychedelic stocks are not for risk-averse investors. Dolphin explains that you must be patient and be willing to endure a bumpy ride.
“Still, this is a space where you have to dig deep, look at who’s leading the science, whether the intellectual property is solid, and how realistic the clinical path is,” Dolphin adds. “There’s real potential here, but it’s definitely not for the faint of heart and a long-term play.”
These are some of the top psychedelic stocks, and one exchange-traded fund (ETF), that are worth watching:
— Compass Pathways PLC (ticker: CMPS)
— Mind Medicine Inc. (MNMD)
— GH Research PLC (GHRS)
— Enveric Biosciences Inc. (ENVB)
— Atai Life Sciences NV (ATAI)
— Cybin Inc. (CYBN)
— AdvisorShares Psychedelics ETF (PSIL)
Compass Pathways PLC (CMPS)
Compass Pathways is a speculative British pharmaceutical stock that specializes in psychedelics. The company’s stock has been on a roller coaster, and it’s up only about 3% as of the July 17 market close. However, it has a small market cap below $400 million, which can help it take off quickly once it crosses a few regulatory hurdles.
Joseph Tucker, CEO of Enveric Biosciences, presents the bullish thesis for this stock: “Compass Pathways is the most advanced and visible company in the psychedelic drug development space, and its progress sets the tone for much of the sector. The company is currently running Phase 3 trials of COMP360, its proprietary psilocybin formulation, in treatment-resistant depression. With FDA Breakthrough Therapy designation and global regulatory engagement, Compass has positioned itself as the benchmark for traditional psychedelic therapeutics.”
However, he mentions some risks investors should consider before committing to the stock: “That said, the therapy model built around COMP360 is intensive, costly and requires significant clinical infrastructure, raising important questions about long-term scalability even if efficacy is demonstrated.”
Mind Medicine Inc. (MNMD)
MindMed has a market cap of around $700 million and is up by roughly 28% year to date. The company offers psychedelic and empathogen drugs that aim to treat brain health disorders.
Dolphin covers some of the catalysts that can lead to more stock gains: “They’ve got a broad pipeline and are taking on several indications at once, including anxiety and ADHD. Their work with LSD and MDMA derivatives is especially interesting, and their academic partnerships give them a lot of scientific credibility. They’re still early, but they’re making steady progress.”
Rob Barrow, CEO of MindMed, mentioned in the company’s Q1 2025 press release that it is building momentum for its three “pivotal Phase 3 trials.” Topline data is expected to arrive from its Voyage study in the first half of 2026, while its Panorama and Emerge studies will take the spotlight in the second half of the year.
GH Research PLC (GHRS)
GH Research is a psychedelic stock that demonstrates how quickly momentum can change once a company achieves significant regulatory milestones and delivers good results in trials. Although the stock is down by about 10% over the past five years, shares have more than doubled year to date.
Tucker says there are several reasons that GH Research stands out among psychedelic stocks. “GH Research has taken a different path, focusing on a fast-acting psychedelic compound delivered via inhalation. Their lead candidate, GH001, targets treatment-resistant depression with a very short duration of action and has shown rapid antidepressant effects in early trials. The company is advancing through Phase 2 and is generating investor interest based on the potential to deliver therapeutic benefits with shorter sessions and less clinical overhead than oral psilocybin.”
Enveric Biosciences Inc. (ENVB)
Enveric Biosciences is a high-risk, high-reward psychedelics stock that is down sharply year to date. The company is extremely speculative, with a $3 million market cap, so any positive news can lead to dramatic gains. Investors who are interested in psychedelic stocks may want a small, speculative position.
“Enveric Biosciences is flying a bit more under the radar, but their approach is unique,” Dolphin says. “They’re focused on developing non-hallucinogenic compounds that still offer the mental health benefits of psychedelics — without the trip. Their lead compound, EB-003, is being designed for conditions like anxiety and depression, and they’ve already shown strong preclinical data. If they can keep moving forward and maintain that safety profile, they could really stand out.”
Atai Life Sciences NV (ATAI)
Atai Life Sciences is a biopharmaceutical company that is developing new mental health treatments for patients. The company has backing from Peter Thiel, Catalio Capital Management, Future Ventures and other venture capitalists.
The firm recently announced positive topline results from the Phase 2b study of BPL-003, and it’s a big step in the company’s goal to become a global leader in psychedelic-based mental health therapies.
The stock has been rallying on the recent news. Shares soared by more than 20% upon that announcement and are up by 110% year to date.
Cybin Inc. (CYBN)
Cybin is a Canadian psychedelic stock that was founded in 2019. It has a market cap just shy of $200 million and recently reported to investors that it received approval from the U.K. for a second pivotal depression study.
The firm has industry-leading proof-of-concept data and is in the process of developing CYB003, which is in Phase 3 clinical trials. The company is working on getting CYB003 and CYB004 approved and commercialized.
At this stage, Cybin is a pre-revenue company, but analysts are extremely bullish. The stock is rated as a “strong buy,” with multiple analysts predicting that the stock will rise by more than 1,000% over the next year.
AdvisorShares Psychedelics ETF (PSIL)
You don’t have to guess which psychedelic stock will take off if you invest in the AdvisorShares Psychedelics ETF. This fund contains a basket of psychedelics stocks, and the managers do the stock-picking for you.
PSIL has been around since Sept. 15, 2021, and it has a 0.99% expense ratio. Investors can also trade PSIL options for leveraged exposure to this fund. More than 80% of the fund’s total assets are in micro-cap stocks, and more than half of its holdings are in U.S.-based companies.
The fund has enjoyed a strong year. It’s up by more than 25% year to date, allowing it to comfortably outperform the S&P 500 and Nasdaq composite during that stretch. The fund’s top three positions are Atai Life Sciences, MindMed and Quantum Biopharma Ltd. (QNTM).
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7 Best Psychedelic Stocks and ETFs to Buy originally appeared on usnews.com
Update 07/18/25: This story was previously published at an earlier date and has been updated with new information.
