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Inverse Cramer ETF (SJIM) Liquidated After Showing Negative Returns

The inception and closure of Inverse Cramer ETF

The Inverse Cramer ETF, an innovative financial product by Tuttle Capital Management, aimed at capitalizing on the market predictions of CNBC's Mad Money host Jim Cramer, is set to close. Launched in early March 2023, this unique exchange-traded fund (ETF) took a contrarian approach by shorting Cramer's stock recommendations. Despite its novel strategy, the ETF struggled to gain traction, amassing only $2.4 million in assets and recording a 15% negative return. 

The fund's closure, announced for February 13, marks an end to its ten-month operation, reflecting the challenging dynamics of financial market predictions.

Jim Cramer’s influence and ETF performance

Jim Cramer, a well-known figure among retail crypto and stock traders, often garners attention for his investment tips, which have been a mix of hits and misses. His fluctuating stance on cryptocurrencies, particularly Bitcoin, has been a point of interest. Cramer's initial skepticism about the inherent value of cryptocurrencies evolved into an acknowledgment of profitable opportunities, despite earlier advising investors to sell. 

Jim Cramer (@jimcramer) on January 25th:

“Another day.... another chance to roll out of bitcoin while the Number Go Up club tries to keep it at 40,000”

This unpredictable market commentary was the driving force behind the Inverse Cramer ETF's strategy. However, the ETF's performance failed to meet expectations, paralleling the trajectory of the simultaneously launched Long Cramer ETF (LJIM), which also saw lackluster results with a mere 2.2% return and was subsequently scrapped in August 2023.

The future of Tuttle Capital and market strategies

The closure of the Inverse Cramer ETF (SJIM) raises questions about the future investment strategies of Tuttle Capital Management. Matthew Tuttle, the firm's CEO and chief investment officer, expressed:

“point out the danger of following TV stockpickers, Jim Cramer specifically, and the total lack of accountability.”

“We feel like we have accomplished that mission, but retail investors are more focused on volatile products and the interest in a long/short portfolio never fully materialized,”

Tuttle noted the firm's focus on more volatile products and the lack of time to sustain this particular portfolio due to the success of their other ETFs. Set for liquidation on February 23, SJIM's closure reflects a broader trend in the finance industry, where investor appetite increasingly gravitates towards dynamic and high-stakes markets. 

Additionally, Tuttle Capital's proposed venture into leveraged Bitcoin ETFs signals a continued interest in innovative financial products, aligning with the evolving preferences of modern investors.