According to Cointelegraph: Tuttle Capital Management, the firm behind the exchange-traded fund which aimed to profit by shorting the stock tips given by Mad Money host Jim Cramer, has decided to shut down the fund. Boasting negative 15% returns, the Inverse Cramer ETF (SJIM) will cease trading less than a year after its launch in March 2023.
On January 25, the fund's manager announced that SJIM will be closing down and undergoing liquidation, with February 13 set as its last trading day. The fund, which engaged in shorting the stocks recommended by Cramer, attracted a mere $2.4 million and has been in the red since its inception. This comes on the back of the firm's Long Cramer ETF (LJIM) also being scrapped in August 2023, after securing only $1.3 million and 2.2% returns. The LJIM was launched in tandem with SJIM and focused on buying stocks tipped by the CNBC host.
Cramer's stock tips and his fluctuating stance on crypto have made him a meme in certain retail crypto and stock trading circles. Despite his previous dismissal of cryptocurrencies as lacking "real value," Cramer later admitted to profiting from Bitcoin after recommending investors to sell.
Matthew Tuttle, CEO and Chief Investment Officer at Tuttle Capital, stated the ETF was launched to highlight the risks of relying on television stock pickers like Cramer and their lack of accountability. However, the interest in a long/short portfolio never fully materialized as retail investors were more attracted to volatile products.
SJIM is expected to halt operations, liquidate its assets, and pay shareholders on February 23 at the net asset value of their respective shares. Additionally, Tuttle Capital plans to launch six ETFs leveraging Bitcoin, with proposed offer sizes of 1.5x, 1.75x, and 2x for both long and short ETFs.