CNBC host Jim Cramer said he has reduced his holdings of Ethereum ETH/USD ahead of the launch of the first Bitcoin BTC/USD futures exchange-traded fund in the United States.
What Happened: Cramer believes that the Bitcoin futures ETF launch could mark a near-term top for cryptocurrency markets. He also thinks that cryptocurrencies have become the definition of “rank speculation.”
“If I’m right, then tomorrow very well could be the peak for crypto, and that’s why I sold off one-eighth of my Ethereum position today,” the “Mad Money” host said on Monday.
See Also: How To Buy Ethereum (ETH)
Why It Matters: Cramer’s comments come ahead of the debut of the first Bitcoin-linked exchange traded fund on Tuesday. The Bitcoin ETF from ProShares will trade under the ticker “BITO.”
Bitcoin surged past the $60,000 mark for the first time in six months last week amid speculation that a Bitcoin Futures ETF could begin trading this week. The apex cryptocurrency is down just 3.8% from its all-time high of $64,863.10 reached in April.
Cramer sold his Bitcoin position earlier this year but later announced he invested in Ethereum as he believes it has more of a use-case as a currency than Bitcoin.
Ethereum, the world’s second-largest cryptocurrency by market capitalization, has outperformed Bitcoin year-to-date following the rise in popularity of non fungible tokens (NFTs).
Ethereum’s year-to-date gains are 422.05%, compared to Bitcoin’s gains of 112.5% for the same period.
Price Action: Ethereum is down 1.1% during the last 24 hours, trading at $3,822.23 at press time, while Bitcoin is up almost 0.1% at $62,465.50.
Read Next: Carl Icahn: Inflation Bad For Markets Long Term, Good For Bitcoin?
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