Tuttle Capital files Inverse ETFs to trade against Jim Cramer’s recommendations

Advisory firm Tuttle Capital has filed two exchange-traded funds (ETF), which it created to trade against investment recommendations made by Jim Cramer, who hosts the popular CNBC show “Mad Money.”

Jim Cramer is a veteran stock market investor known for his contrarian investment strategy. He buys when everyone is selling and vice versa.

Since Cramer dabbled into crypto, his predictions have proven false on several occasions. In July, when the crypto market fell below the $1 trillion mark, he said he was selling his bitcoin as it has “no real value.” Bitcoin rebounded and posted the highest monthly gain of 17% by the end of the month.

Cramer also predicted that Coinbase shares could tumble following news of the SEC investigation in July. Unfortunately for him, Coinbase stocks rallied up to 50% one week later.

Famed crypto trader Algod took a bet to trade against all of Cramer’s predictions. By August, Algod said he had doubled his $50,000 by trading against Jim Cramer.

Inverse ETF to trade against Jim Cramer

Tuttle Capital submitted a preliminary prospectus to the SEC on Oct. 5 to trade against Jim Cramer’s investments through the Short Inverse Cramer ETF (SJIM) and Long Cramer ETF (LJIM).

According to the filing, the Short Inverse Cramer ETF (SJIM) will take the opposite position of any stocks Cramer recommends publicly on Twitter or in his Mad Money show. The Long Cramer ETF (LJIM) will track the results of Cramer’s investment.

At the moment, Tuttle Capital has about 80% of its investments in the inverse of securities recommended by Cramer.

Tuttle Capital first launched an Inverse ETF against Cathie Wood’s ARK Invest in November 2021. The Short Innovation ETF (SARK) — currently up 83% — was created to bet against the ARK Innovation ETF (ARKK).

Following the launch of SARK, Bloomberg Senior Analyst Eric Balchunas predicted that a Cramer ETF may be imminent.

We actually wrote back in Feb about how an Inverse Cramer ETF would likely be filed at some point. Given some of the stuff that has been tried w ETFs this isnt big stretch. And ETFs tied to big personalities not unprecedented eg $SARK $TSLQ pic.twitter.com/Dsx5aYDmk8

— Eric Balchunas (@EricBalchunas) October 5, 2022