Cramer says he will sell half of his ether holdings if regulators approve bitcoin ETFs

Published Thu, Oct 14 202110:46 AM EDTUpdated Thu, Oct 14 202111:40 AM EDT

CNBC's Jim Cramer said Thursday he would be a seller of digital currencies if the Securities and Exchange Commission were to approve any of the pending applications to start bitcoin exchange-traded funds. "The moment the funds start should be a short-term peak" in crypto prices, Cramer said on CNBC's "Squawk Box." "I will sell half my ethereum the day all this stuff is approved." Cramer said he still loves ether but taking some profits would be a price play. At a Financial Times conference a few weeks ago, SEC Chairman Gary Gensler repeated his support for bitcoin ETFs that would invest in futures contracts instead of the world's biggest digital currency itself. The Wall Street Journal reported Thursday the SEC could decide as early as next week on several applications to become among the first bitcoin ETFs to trade in the U.S. In recent weeks, bitcoin and other cryptos have mounted a comeback. Early Thursday, bitcoin traded as high as $58,488 , its highest level since May 10. Bitcoin hit an all-time high in April near $65,000. It was then gutted, sinking below $29,000 in June. Ether , the No. 2 digital coin, followed a trading pattern similar to that of bitcoin this year. It traded Thursday at just under $3,800, highs back to September. Cramer has been talking up cryptos for a while now. He revealed earlier this year that he bought bitcoin and sees it as an alternative to large cash positions. In April , Cramer said he paid off a mortgage using profits from his investment in bitcoin. In June, he said, "Sold almost all of my bitcoin," fearing China's crypto crackdown . In May, Cramer said he owned "a lot" of ether, explaining he initially bought it to bid in Time magazine's nonfungible token auction. Later that month , he said, "I sold half my ethereum ... and I put some money down to own a Hummer." Sign up here for the new CNBC Investing Club newsletter to follow Jim Cramer's every move in the market, delivered directly in your inbox. — Reuters contributed to this report.

The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., May 12, 2021.

Andrew Kelly | Reuters