In this article, we will be taking a look at the 13 Best Psychedelic Stocks to Invest in Now.
Unlike drugs such as cocaine or marijuana, psychedelics create an “alternate reality” by altering feelings, thoughts, and energy levels. This class includes substances like LSD and plant-derived chemicals, which often lead to spiritual experiences. Psychedelics fall into two main groups: serotonergic drugs (like LSD) and empathogens or dissociatives (like PCP). Beyond recreation, they are being studied for treating opiate addiction, severe depression, panic disorder, and PTSD.
Venture capitalists have played a significant role in the resurgence of interest in psychedelics. Investor interest in startups in this field surged around the start of 2020, a period known as the “psychedelic renaissance.”
Psychedelic-focused pharmaceutical companies are pursuing government approvals as hallucinogens like psilocybin show promise in treating conditions such as schizophrenia and depression. The U.S. psychedelic drugs market is expected to grow from $4.51 billion in 2025 to $15.62 billion by 2032 (CAGR 16.8%), while the global market is projected to hit $11.93 billion by 2029 (CAGR 16.9%). Psilocybin is the most widely used psychedelic in the U.S., with 8 million adults reporting use in 2023. LSD usage is on the rise, particularly among 18–25-year-olds, and its market is projected to grow from $145.9 million in 2024 to $265.7 million by 2034. MDMA continues to gain traction in PTSD research, and ketamine has drawn attention for depression treatment, highlighted by FDA approval of Spravato nasal spray.
Growing mental health problems, the need for alternative therapies, and legislative changes as more US states and localities legalize or decriminalize psychedelics are driving the market’s expansion. Psychedelic substances are demonstrating therapeutic promise in the treatment of addiction, PTSD, anxiety, and depression. Their medicinal uses are also growing as a result of ongoing research and development.
Photo by Florian van Duyn on Unsplash
Our Methodology
For our methodology, we first identified the top 10 holdings of the AdvisorShares Psychedelics ETF. We then ranked these stocks according to the total number of hedge fund holders, based on data from Insider Monkey for Q2 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the best psychedelic stocks to invest in now.
13. NRx Pharmaceuticals, Inc. (NASDAQ:NRXP)
Number of Hedge Fund Holders: 4
NRx Pharmaceuticals, Inc. (NASDAQ:NRXP), a clinical-stage biopharmaceutical company, is focused on developing NMDA-based therapies for central nervous system disorders, including suicidal depression, chronic pain, and PTSD. Its lead candidates, NRX-100, a preservative-free intravenous ketamine formulation, and NRX-101, an oral combination therapy, are at the forefront of the company’s innovative approach. Recently, NRX-100 received an expanded FDA Fast Track designation for suicidal ideation across all depression types, broadening its potential U.S. patient base to around 13 million adults.
The company has also made significant regulatory progress. NRXP submitted manufacturing data supporting the New Drug Application (NDA) for NRX-101, which holds Breakthrough Therapy designation for suicidal bipolar depression. Additionally, an Abbreviated New Drug Application (ANDA) was filed for NRX-100 to provide a preservative-free alternative amid ongoing ketamine shortages in the U.S.
Beyond drug development, NRx Pharmaceuticals, Inc. (NASDAQ:NRXP) is expanding its clinical footprint through its subsidiary HOPE Therapeutics, which recently acquired Dura Medical and is in the process of acquiring a stake in Cohen and Associates clinics. These moves aim to enhance interventional psychiatry services, strengthen patient care infrastructure, and drive revenue growth, creating a unique integrated model that combines therapeutic innovation with direct care delivery.
12. Psyence Biomedical Ltd (NASDAQ:PBM)
Number of Hedge Fund Holders: 6
Psyence Biomedical Ltd. (NASDAQ:PBM) is a biopharmaceutical company developing naturally derived psychedelic medicines, including psilocybin and ibogaine, targeting serious mental health conditions in palliative care and other complex disorders. It stands thirteenth on our list among the best psychedelic stocks. The company has recently made notable strides in both clinical progress and strategic positioning.
In August 2025, Psyence Biomedical Ltd. (NASDAQ:PBM) BioMed expanded patient eligibility for its clinical trials by removing the requirement that cancer patients be terminally diagnosed, significantly broadening the potential patient pool. Three clinical trial sites have been activated, and patient enrollment is expected to accelerate, supported by a Scientific Advisory Board of leading experts in neuroscience and psychedelic medicine.
The business also achieved a breakthrough in psychedelic drug production through its collaboration with PsyLabs, producing a high-purity ibogaine total alkaloid extract that meets global pharmaceutical standards. This milestone strengthens the corporation’s ability to supply active pharmaceutical ingredients for clinical research and therapeutic applications and has contributed to positive investor sentiment.
Financially, Psyence Biomedical Ltd. (NASDAQ:PBM) has stabilized, with over $11 million in cash and no debt, following a reverse stock split earlier in 2025 to regain Nasdaq compliance. Its unique operational presence in Africa, combined with regulatory and clinical advancements, provides a competitive edge in the emerging psychedelic medicine sector.
Looking ahead, the company will present at the H.C. Wainwright 27th Annual Global Investment Conference in September 2025, highlighting its clinical pipeline and business strategy.
11. Relmada Therapeutics, Inc. (NASDAQ:RLMD)
Number of Hedge Fund Holders: 7
Relmada Therapeutics, Inc. (NASDAQ:RLMD) is a clinical-stage biotechnology company developing therapies for oncology and central nervous system (CNS) disorders. Its leading candidates include NDV-01, a controlled-release formulation of gemcitabine and docetaxel for non-muscle invasive bladder cancer (NMIBC), and sepranolone, a neurosteroid in development for conditions such as Prader-Willi Syndrome and Tourette Syndrome.
In August 2025, the company reported strong second-quarter results and six-month follow-up data from its Phase 2 NDV-01 study, showing a 91% overall response rate with a favorable safety profile. Enrollment is ongoing, with nine- and twelve-month updates expected, and a Phase 3 registration trial planned for the first half of 2026. In parallel, Relmada Therapeutics, Inc. (NASDAQ:RLMD) is preparing a Phase 2 trial of sepranolone in Prader-Willi Syndrome within the same timeframe.
The near-term pipeline is anchored by NDV-01’s potential as a transformative bladder cancer therapy, while advancing sepranolone reflects the business’s commitment to tackling severe metabolic and neurological disorders with limited treatment options. For investors monitoring emerging trends alongside the best psychedelic stocks, RLMD’s dual-focus strategy highlights the growing appeal of companies pursuing innovative, high-impact therapies.
By pursuing a dual-focus strategy in oncology and neurosteroid therapy, Relmada Therapeutics, Inc. (NASDAQ:RLMD) positions itself at the forefront of biopharma innovation. The positive NDV-01 results and upcoming sepranolone trials highlight accelerating clinical progress, a diversified pipeline, and the potential to deliver breakthrough treatments across high-need therapeutic areas.
