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CBD & medical cannabis

On the rise worldwide and scientifically recognised

Definition

What is CBD?

CBD stands for cannabidiol (non-psychoactive) and is one of the approximately 100 cannabinoids from the cannabis plant.

In November 2020 the European Court of Justice ruled that CBD is not a narcotic drug – in line with the WHO recommendation of 2018.

Close-up: a drop of CBD oil falls from a pipette onto the back of a hand

Cannabinoid system

The endo­cannabinoid system

Every human and every vertebrate has a signalling system of its own that works like a thermostat: when something in the body drifts out of balance, it adjusts. It is named after the cannabis plant – researchers discovered it while studying how cannabis acts on the body.

  1. 01

    The body makes messengers

    When needed, the body produces its own cannabinoids, the endocannabinoids. The best known are anandamide and 2-AG.

  2. 02

    They dock onto receptors

    Like a key in a lock, they fit receptors on the cells: CB1 sits mainly in the brain and nerves, CB2 mainly in cells of the immune system.

  3. 03

    Enzymes clean up

    Once the signal has arrived, enzymes quickly break the messengers down again. This keeps the system targeted and only active as long as needed.

The system calms overactive nerve cells and helps the body maintain or restore its inner balance. Experts call this homeostasis.

What it helps regulate

  • Pain
  • Mood
  • Appetite
  • Sleep
  • Memory
  • Immune response

Where THC and CBD come in

  • THC Docks directly onto the CB1 receptor in the brain. That is why it is intoxicating.
  • CBD Barely binds to CB1 or CB2 directly and influences the system rather indirectly. It is not intoxicating.

Research milestones

  1. 1963 Prof. Raphael Mechoulam (Israel) determines the chemical structure of CBD.
  2. 1964 Mechoulam's team isolates THC for the first time.
  3. 1988 The first cannabinoid receptor (CB1) is identified in the brain.
  4. 1992 The first messenger made by the body is discovered: anandamide.
  5. 1993 Researchers find the second receptor, CB2.

Medical use

Medical cannabis in practice

Medical cannabis is approved in many countries. In Germany, health insurers have covered the costs under certain conditions since 2017, and since April 2024 medical cannabis is no longer classified as a narcotic. According to the Federal Institute for Drugs and Medical Devices, imports rose from around 71 tonnes in 2024 to 201 tonnes in 2025.

Indications include chronic pain, spasticity in multiple sclerosis, severe forms of epilepsy and symptoms accompanying cancer and HIV therapies.

In the USA, 41 states allow medical use; since 28 April 2026 the DEA lists cannabis from state medical programmes in Schedule III. Sources: BfArM, DISA, Federal Register.

Dark green hemp leaves against a black background

Approved medicines

Evidence and approval

Over 500 evidence-based clinical studies across medical disciplines.

  • Sativex

    Approved for multiple sclerosis.

  • Epidiolex

    Approved for three rare forms of epilepsy.

  • Dronabinol

    Active ingredient THC. Approved in the USA for chemotherapy-induced nausea and appetite loss in AIDS.

  • Exilby

    Approved in Germany since 2026 for chronic lower back pain with nerve involvement.

For investors

Medical cannabis in the investment universe

CanSoul's investment universe includes pharmaceutical and extraction companies as well as licensed producers that grow, process or export medical cannabis.

Rising imports into Germany and the rescheduling in the US are improving the framework. Approval procedures, price pressure and reimbursement by health insurers remain uncertain. The sector is highly volatile; the ETF's strategy is long-term.

The ETF page lists the portfolio categories and companies.

To the ETF