Tuttle Capital to Close Underperforming Inverse Cramer ETF, Eyes Bitcoin-Leveraging ETFs
Summary:
Tuttle Capital Management is set to close and liquidate its Inverse Cramer ETF (SJIM) following underwhelming performance and interest. SJIM shorted stock buy tips from Jim Cramer, attracting only $2.4 million and seeing a 15% reduction since its 2023 launch. This follows the closure of Long Cramer ETF (LJIM) that experienced a similar fate. The firm plans to focus on more successful ETFs, while also filing for new, Bitcoin-leveraging ETFs.
Tuttle Capital Management declared on January 25th that their Inverse Cramer ETF (SJIM), initiated in early March 2023, is set to close and be liquidated, with its final trading day slated for February 13. SJIM, which shorts stock purchase suggestions by Cramer, only amassed a modest $2.4 million and reported a 15% loss since its inception. This closure follows the discontinuation of the firm's Long Cramer ETF (LJIM) in August 2023, which only garnered $1.3 million and a 2.2% return. LJIM, launched concurrently with SJIM, backed the stock suggestions of Mad Money's host. Cramer has earned a notorious reputation amongst some retail crypto and stock traders for his sometimes ill-fated investment advice. His fluctuating stance on cryptocurrencies, which he once dismissed as having "no real value," eventually saw him admitting his mistake and acknowledging the significant profits he made from Bitcoin (BTC) even after initially advising investors to divest. As of January 26, Cramer is once again prompting his followers to offload Bitcoin.
Matthew Tuttle, the CEO and Chief Investment Officer of Tuttle Capital, mentioned the inception of the ETF was essentially aimed at illuminating the perils of adhering to TV-based stock advisors, specifically Jim Cramer, and their profound lack of accountability. He asserted that their mission was accomplished but also acknowledged that retail investors demonstrated more intrigue in volatile products. The interest in a long/short portfolio didn't garner the expected enthusiasm, leading to the ETF's closure. Further, Tuttle explained that the company lacked the bandwidth to continue managing this portfolio due to their engagement with other more fruitful ETFs. It has been announced that SJIM will halt operations, liquidate its assets, and dispense to shareholders on February 23, at which point they will receive cash equivalent to the net asset value of their shares. In addition, Tuttle Capital has submitted proposals for six Bitcoin-leveraging ETFs, with projected offerings of 1.5x, 1.75x, and 2x for both long and short ETFs.
Published At
1/29/2024 3:59:00 AM
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