Jim Cramer and Bitcoin: A Misleading Signal?

Four words, multiple interpretations. Jim Cramer posted on X the message "Crypto put us on". The phrase can be understood as "the crypto got us good", but its precise meaning remains uncertain without further explanation from the CNBC presenter. Therefore, it is not enough to establish a new change of position on Bitcoin.{#h-}

This ambiguity, however, finds a familiar ground: Cramer's statements have fueled the "Inverse Cramer", a meme that involves taking the opposite of his recommendations. The concept has even given rise to two ETFs.

Key Points

• The message comes from Jim Cramer's X account, without confirmation of a similar statement on air.
• The interpretation "the crypto got us good" remains a possible reading.
• Two ETFs following or inversing his recommendations began trading in March 2023, before closing.
• His past mistakes feed the meme, without demonstrating that it constitutes a reliable investment indicator.

Jim Cramer and Bitcoin, a Relationship of Changing Positions

The Mad Money host has not always expressed reservations about cryptocurrencies. In 2021, he explained that he had used part of his gains from Bitcoin to pay off a mortgage. However, in June, he announced that he had sold almost all of his position, citing the Chinese crackdown on mining.

After the bankruptcies that marked 2022, his rhetoric hardened. On December 5, 2022, while Bitcoin was hovering around $17,150, Jim Cramer encouraged investors to exit their crypto positions, stating that it was never too late to sell a bad position.

In November 2023, he acknowledged that he had been "premature" in his decision to sell. He also reminded that he had made money with his investment. These successive interventions illustrate a changing opinion, rather than a constant opposition to Bitcoin.

His new message should therefore be read with caution. Without clarity on what he means, attributing a general rejection of cryptocurrencies to him exceeds the four words published. Jim Cramer enigmatic on X -- Source: X Account

The Inverse Cramer, From Meme to Closed ETFs

Tuttle Capital Management has transformed this reputation into financial products on March 2, 2023. The Long Cramer Tracker ETF (LJIM) followed his recommendations, while the Inverse Cramer Tracker ETF (SJIM) sought to take the opposite stance. The funds were neither affiliated with M. Cramer nor managed with his participation.

The experience was short-lived. LJIM closed in 2023. SJIM ceased trading on February 13, 2024, with a scheduled liquidation on February 23. Its manager cited insufficient investor interest and other business priorities.

The anecdotes often associated with the meme also require context. Regarding Bear Stearns in 2008, Cramer explained that he had reassured clients about the funds entrusted to the institution, without recommending the purchase of its stock. Summarizing this episode as a failed stock advice erases this distinction.

The contrast between his call to sell in December 2022 and Bitcoin surpassing $100,000 two years later fuels the jokes. It does not turn every pessimistic statement into a buy signal. The Inverse Cramer remains a commentary on the credibility of media experts, not a method whose effectiveness is established. Far from it.

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