The inverse Cramer ETF is about to close.
An exchange-traded fund (ETF) that bet on trading tips from CNBC Mad Money host Jim Cramer is shutting down after ten months of trading.
On January 25, the fund manager – Tuttle Capital Management – announced that the Inverse Cramer ETF (SJIM), launched in early March 2023, will be closed and discontinued with the last trading day on February 13.
The fund fell short of Cramer's stock buy recommendations, but managed to pull in $2.4 million and has returned negative 15% since launch.
In August 2023, the firm's Long Cramer ETF (LJIM) pulled $1.3 million and was canceled after posting a 2.2% return. Started with SJIM and bought the Mad Money host stock tips.
Cramer has become a meme among some retail cryptocurrency and stock traders for his investment tips that are sometimes the wrong call.
His love-hate relationship with crypto has seen Cramer previously say that cryptocurrencies have “no real value”, but later admit that he was wrong, noting that he has “made a lot of money” from Bitcoin (BTC), despite previously urging investors to sell.
Since the January 25 X post, Cramer has again urged his followers to sell Bitcoin.
Another day….another chance to get out of Bitcoin as the number goop club tries to keep it at 40,000.
— Jim Cramer (@jimcramer) January 25, 2024
Matthew Tuttle, CEO and Chief Investment Officer of Tuttle Capital, said the ETF was launched to “address the dangers and general lack of accountability of following TV stocks, particularly Jim Cramer.”
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“We feel we have achieved the mission, but retail investors are focused on volatile products and the need for a long/short portfolio has not been fully realised,” he added.
Tuttle said the firm “didn't have time to run this portfolio” because of other, more successful ETFs.
SJIM is expected to cease operations on Feb. 23, dispose of its assets and make distributions to shareholders, who will receive cash at the net asset value of their shares, Tuttle Capital said.
The company offers long and short ETF offerings of 1.5x, 1.75x and 2x each for six ETFs that use bitcoin.
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