Why Jim Cramer is selling more ether ahead of bitcoin futures ETF debut



CNBC’s Jim Cramer joins ‘Squawk Box’ to explain why he’s selling more of his ether holdings ahead of the first bitcoin futures ETF from ProShares. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

Shares of the first U.S. bitcoin-linked exchange-traded fund rose in their trading debut Tuesday.

The ProShares Bitcoin Strategy ETF, ticker “BITO,” jumped more than 3% to $41.44. The fund tracks CME bitcoin futures, or contracts speculating on the future price of bitcoin, rather than the crypto itself.


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That means investors in the ETF should expect the price and performance of the shares to differ somewhat from the price of bitcoin itself. This isn’t ideal for existing investors; many of them take a long view on cryptocurrencies and had hoped for an ETF that would track physical bitcoin that investors could buy and hold.

The price of bitcoin briefly popped Tuesday morning after trading began, jumping 3% to $63,035.04, according to Coin Metrics, nearing its all-time high from April 14 of $64,899. Bitcoin futures gained about 2% as well.

“The fund seeks to provide capital appreciation primarily through managed exposure to bitcoin futures contracts. The fund does not invest directly in bitcoin,” the ProShares website says of the fund. The fund has an expense ratio of 0.95%.

ProShares is the eighth-biggest ETF provider by assets, according to ETDB.com. The firm is known for its funds that use leverage to track moves in certain indexes multiplied by a certain amount. ProShares executives rang the opening bell at the NYSE, where the ETF trades.

The crypto industry has been longing for a bitcoin-related ETF for many years. In about 2017, asset managers began applying to launch spot bitcoin ETFs but their proposals were rejected by the Securities and Exchange Commission, which maintained none were able to prove market resistance to manipulation. The rush of applications for futures-based ETFs came this year shortly after Chairman Gary Gensler took the helm of the agency.

“What you have here is a product that’s been overseen for four years by the U.S. federal regulator CFTC, and that’s being wrapped inside of something within our jurisdiction called the Investment Company Act of 1940, so we have some ability to bring it inside of investor protection,” Gensler said of the new ETF on CNBC’s “Squawk on the Street” on Tuesday. “It’s still a highly speculative asset class and listeners should understand that underneath this, it still has that same aspect of volatility and speculation.”

Some argue the impact of an ETF, particularly one tied to futures contracts, is lessened by adoption of crypto by companies and fintechs. Investors have many ways to get indirect exposure to bitcoin without actually owning it, through institutional-grade funds, financial apps like PayPal and Square’s CashApp, or crypto-related equities like Coinbase and mining stocks.

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42 thoughts on “Why Jim Cramer is selling more ether ahead of bitcoin futures ETF debut

  • January 14, 2022 at 6:53 am
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    Jim Kramer's crypto videos dont age well.

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  • January 14, 2022 at 6:53 am
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    Buy as much bitcoin as possible while uneducated people still accept dollars for it 😉

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  • January 14, 2022 at 6:53 am
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    Wow horrible timing lol I feel bad for the older generation that don't understand just buying and holding is the best strategy of btc and eth

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  • January 14, 2022 at 6:53 am
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    Jim continuely gets rekt in his crypto trades.

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  • January 14, 2022 at 6:53 am
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    You have better odds on following the advice of a magic 8ball than following Jimbo. Do the opposite and make money.

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  • January 14, 2022 at 6:53 am
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    Andddd you were wrong…

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  • January 14, 2022 at 6:53 am
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    The 'buy high, sell low' school of thought lol

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  • January 14, 2022 at 6:53 am
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    Cramer is an expert at selling before crypto pumps📝🙌 look back at his past crypto selling recommendation 🤣🤣🤣

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  • January 14, 2022 at 6:53 am
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    Guy sounds like a bitter little child at the end. What a disgrace.

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  • January 14, 2022 at 6:53 am
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    If you listen to this FAKENEWS, especially Cramer who is a total 🤡, you deserve your future portfolio missing this technology

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  • January 14, 2022 at 6:53 am
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    The same guy that said he sold all his bitcion on a dip and lost 200% gains if he kept it. lol

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  • January 14, 2022 at 6:53 am
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    Doesn’t Jim ever tire of being wrong?

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  • January 14, 2022 at 6:53 am
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    Successful people don't become that way overnight .most people you see as a glance-wealth, a great career, purpose-is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life..

    Reply
  • January 14, 2022 at 6:53 am
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    Hello, I'm Ahmed chatting from Saudi Arabia. I have been trying to learn everything possible about bitcoin because I have already lost so much money trying to trade on my own. I am willing to invest heavily but I’m looking for a legit professional broker or investment company to assist me.

    Reply
  • January 14, 2022 at 6:53 am
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    BITO comments anyone?

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  • January 14, 2022 at 6:53 am
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    Lol. He missed that one!🤣

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  • January 14, 2022 at 6:53 am
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    I doubt he owns any crypto. 80,000% later CNBC (especially Sorkin) continues with the anti-Crypto babel…

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  • January 14, 2022 at 6:53 am
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    He sold and missed upside.

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  • January 14, 2022 at 6:53 am
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    Cranmer don’t sell ether lol

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  • January 14, 2022 at 6:53 am
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    ETH actually pumped more than BTC despite the ETF….

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  • January 14, 2022 at 6:53 am
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    Jim is right 100% right 50% of the time 🙂 flip flopped aka PUMP & DUMPr

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  • January 14, 2022 at 6:53 am
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    < I see BTC at $75K by end of this year but Will always let anyone know to forget predictions and start making good profit now because future valuations are all speculations and guesses.The market is very unstable and you can't tell if it's going bearish or bullish.While myself and others are tradn without fear of making a loss others are being patient for the price to skyrocket. It all depends on the pattern you follow.I was able to make 9 bTC in just September from implementin tradess with tips and info from Mr Clint J Morrison>

    Reply
  • January 14, 2022 at 6:53 am
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    <🚀Amazing content. Crypto is moving with little sign of stopping throughout the past few days and weeks. Bitcoin price fall means analysts remain divided over whether it is entering a bear market or is just suffering a brief correction on the road to more record highs. Right now can be a smart time to invest. so choosing the right investment strategy can reduce your risk and make the most of your money. Bitcoin trading is a lucrative opportunity as it leverages the market volatility. Trading is more fulfilling and is truly reasonable if you learn and earn. I have been able to make 16 BTC of trading but all thanks to exclusive signals from Davis Thomas🙏,.

    Reply
  • January 14, 2022 at 6:53 am
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    This isn't aging well

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  • January 14, 2022 at 6:53 am
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    Cramer is a JOKE! please sell eth into an all time high yo crack head

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  • January 14, 2022 at 6:53 am
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    yeth

    im an idiot

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  • January 14, 2022 at 6:53 am
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    One thing i love about bitcoin trading is that you can handle you coin yourself

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  • January 14, 2022 at 6:53 am
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    Cramer, a seeming Marxist, Leninist Fed reserve confidence game advocate while trying to masquerade,as a Keynesian shoehorned into a "designer suit." Cramer may be the biggest lap dog for tyrants in DC that currently shows his clown act on tell "lie" vision.

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  • January 14, 2022 at 6:53 am
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    This guy tells everyone sell your Btc at 30k nod said selling more ether and now Ethereum hits an all time high🤣🤦🏽‍♂️

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  • January 14, 2022 at 6:53 am
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    I made a good amout of money doing the opposite of what this Fraud Jim be talking about

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  • January 14, 2022 at 6:53 am
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    this is a great thanks

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  • January 14, 2022 at 6:53 am
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    Ethereum has more utility and it’s going to soar soon. NFT market is growing and version 2.0 is being stacked and could launch anytime soon. . .

    Look at what soared more re Grayscale Trusts. The Bitcoin trust up 6 points GBTC whereas the Bitcoin, Ethereum, etc Large Coin Trust GDLC soared 14.42 points.

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  • January 14, 2022 at 6:53 am
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    People that are moving in are doing it to hedge. If the market down turns, these big tech loss won’t be as bad as others. Sell, tax loss harvest, and buy other shares.

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  • January 14, 2022 at 6:53 am
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    Jim Cramer has nothing left to sell because he sold the bottom.

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  • January 14, 2022 at 6:53 am
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    He should stay home !

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  • January 14, 2022 at 6:53 am
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    Woke up one morning with my portfolio containing BETA Few days later saw my account grow by 5000% , it was when it hit me that knowing what and when to buy was more important than buying, was just carrying bags before I let sir Nathan sloan handle my portfolio .

    Reply
  • January 14, 2022 at 6:53 am
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    The best decision I ever made in my life was investing in financial market. Trust me guys, it pays!😊

    Reply
  • January 14, 2022 at 6:53 am
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    I can’t believe how clueless he is on crypto. It’s mind boggling.

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  • January 14, 2022 at 6:53 am
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    I like Cramer, seems like a nice guy, read his book. But he's wrong about Oil ( he doesn't understand how temperamental wind/solar is) , and doesn't get crypto / Bitcoin, either.

    Reply

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