Federal Cannabis Rescheduling/Legalization: Potential rescheduling from Schedule I to Schedule III under federal law could alleviate significant tax burdens (Section 280E) and improve banking access for cannabis companies, directly boosting the profitability and valuations of MSOS's holdings.

State-level Adult-Use Ballot Measures/Expansion: Continued expansion of legal cannabis markets through state-level adult-use ballot measures (e.g., Florida, Pennsylvania) will expand the addressable market for multi-state operators, directly impacting the revenue and growth potential of companies within the MSOS ETF.

Inflationary Pressures & Oversupply: Persistent oversupply in fragmented state markets and ongoing inflationary pressures on cultivation and operational costs can negatively impact the profit margins and overall financial health of cannabis companies, posing a challenge for the ETF.