An exchange-traded fund (ETF) based on the trading insights of CNBC Mad Money host Jim Cramer, known as the Inverse Cramer ETF (SJIM), has decided to close and liquidate just 10 months after its launch. Tuttle Capital Management, the fund's manager, announced the decision on January 25, revealing that the ETF, which was designed to short Cramer's recommended stock picks, will cease operations and distribute cash to shareholders on February 23. Since its launch in March 2023, SJIM has attracted only $2.4 million in assets and has experienced a negative return of 15%.
In contrast, Tuttle Capital Management's previous attempt, the Long Cramer ETF (LJIM), which aimed to follow stock tips from Mad Money presenters, also faced challenges. LJIM raised just $1.3 million before being discontinued in August 2023 after returning 2.2%. Both ETFs were launched with the intention of highlighting the risks of following TV stock pickers, particularly Jim Cramer, and emphasizing the lack of accountability in such recommendations.
Jim Cramer, a popular figure among retail cryptocurrency and stock traders, has previously expressed mixed views on cryptocurrencies. Initially dismissing them as having "no real value," he later admitted to being wrong and claimed to have "made a lot of money" from Bitcoin, despite previously advising investors to sell. On January 25, Cramer once again recommended selling Bitcoin in a post on the social media platform X.
Tuttle Capital CEO and chief investment officer Matthew Tuttle explained that the closure of SJIM was prompted by a lack of interest from retail investors in long/short portfolios, as they were more focused on volatility products. Tuttle emphasized that the firm had achieved its mission of pointing out the dangers of following TV stock pickers but acknowledged that the ETF did not gain enough traction. Despite the discontinuation of SJIM, Tuttle Capital has applied for six Bitcoin leveraged ETFs, including proposed long and short ETFs with leverage ratios of 1.5x, 1.75x, and 2x.
