In this article, we will be taking a look at the 7 Most Promising Psychedelic Stocks According to Hedge Funds.
The psychedelic industry is poised to have a significant “second wave,” transforming from a speculative, counterculture-driven movement into a recognized cornerstone of the US healthcare system. The industry has prioritized rigorous clinical studies, regulatory engagement, and structured therapy models over early-stage hype, mostly due to the growing mental health burden that costs the U.S. economy an estimated $282 billion yearly.
The U.S. now accounts for roughly 45% to 53% of the global psychedelic market. It is valued at approximately $4.51 billion in 2024, and the market is projected to reach $15.62 billion by 2032, reflecting a strong 16.8% compound annual growth rate. Psilocybin remains the industry’s “North Star.” Meanwhile, consumer demand continues to rise: an estimated 11 million U.S. adults used psilocybin in 2025, and nearly 10 million reported microdosing, intensifying the need to bridge underground use with clinical oversight.
The primary turning point is still regulation. Since the FDA has already rejected MDMA-assisted therapy, 2026 is mainly seen as a pivotal year. Regulatory submissions for the treatment of treatment-resistant depression are anticipated to be impacted by late-stage clinical readouts from businesses like Compass Pathways and Definium Therapeutics, which was previously known as MindMed.
Investor attention has simultaneously turned to commercial feasibility. Given the 6–8 hour supervised sessions needed for treatment, capital-strong and scalable therapist training models are increasingly essential. The safe operation of regulated adult-use frameworks is being demonstrated by state-led programs in Colorado and Oregon, which are promoting broader legislative momentum across the country.
With that being said, let’s now take a look at the most promising psychedelic stocks.
Photo by Florian van Duyn on Unsplash
Our Methodology
For this article, we began by filtering psychedelic stocks from etf’s like PSIL. From this list, we selected stocks with positive analyst upside and ranked them in ascending order based on their total number of hedge fund holders as of Q3 2025, as tracked by the Insider Monkey database.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Here is our list of the 7 most psychedelic stocks according to hedge funds.
7. Cybin D/B/A Helus Pharma (NASDAQ:HELP)
Number of Hedge Fund Holders: 14
Price Target Upside: 667.97%
The seventh stock on our list of most promising stocks is Cybin D/B/A Helus Pharma (NASDAQ:HELP).
TheFly reported on February 2 that Jefferies initiated coverage of HELP with a Buy rating and a $22 price target and also highlighted significant upside potential. The firm has identified three key catalysts for 2026 which includes the recent appointment of a permanent CEO, which is seen as a crucial operational and strategic milestone supporting stock appreciation; the lead asset, HLP003, an oral d-psilocin therapy for adjunct major depressive disorder, has a roughly 60% probability of success in its Phase III trial, which could drive a 100%-200% share rally; and HLP004, an intramuscular d-DMT therapy, is anticipated to report de-risking Phase II data in Q1.
Furthermore, Cybin D/B/A Helus Pharma (NASDAQ:HELP) announced Q3 fiscal 2026 results on February 13 for the quarter that concluded on December 31, 2025, showing $195.1 million in cash on hand before any post-quarter adjustments. To advance a multi-asset neuroscience portfolio throughout many stages of development, the business placed a strong emphasis on maintaining disciplined execution across its clinical and operational priorities. The HLP003 Phase 3 and HLP004 Phase 2 studies are still making progress, with an emphasis on clinical strategies that are repeatable and scalable. HELP is well-positioned to deliver on future clinical milestones and generate long-term shareholder value thanks to its solid balance sheet and continuous clinical advances.
Cybin D/B/A Helus Pharma (NASDAQ:HELP) is a clinical‑stage psychedelic biotechnology company developing innovative psilocybin‑based and novel psychotherapeutic compounds and delivery systems to treat mental health conditions with science‑driven, evidence‑based approaches.
6. GH Research PLC (NASDAQ:GHRS)
Number of Hedge Fund Holders: 17
Price Target Upside: 128.98%
GH Research PLC (NASDAQ:GHRS) is placed sixth on our list.
TheFly reported that on January 23, RBC Capital raised its price target on GHRS to $40 from $33 and maintained an Outperform rating. RBC stated that it was growing more hopeful about GHRS’s long-term sales potential, particularly GH001, following the company’s Psychedelics Symposium and discussions with physicians, healthcare payers, and management.
Earlier on January 5, GH Research PLC (NASDAQ:GHRS) announced that the FDA had lifted the clinical hold on its IND for GH001, which allows U.S. patient enrollment and advancing global development plans. This permission allows the company to agree with the FDA on the trial design and puts it in a position to launch its key Phase 3 program in 2026. The Phase 2b results of GH001 demonstrated quick and long-lasting antidepressant benefits; 73% of patients maintained remission at six months with infrequent dosing, and 57.5% of patients experienced remission by Day 8. The treatment demonstrated its potential as a transformative therapy for depression that is resistant to treatment because it was well-tolerated, didn’t require psychotherapy, and facilitated a speedy patient discharge.
GH Research PLC (NASDAQ:GHRS) is a biotech company focused on developing innovative psychedelic‑derived therapies, advancing novel compounds to treat mental health disorders through rigorous clinical research and evidence‑based approaches that expand therapeutic options.
