Total assets of leveraged ETFs on South Korean chip stocks have surged to $31.4 billion, with SK Hynix-related products exceeding 4 times its average daily trading volume.
Odaily reported that The Kobeissi Letter posted on X platform, stating that the leverage level of South Korean chip stocks is at an uncontrollable high level. The total assets of single-stock leveraged and inverse ETFs tracking SK Hynix are approximately $19 billion, exceeding 4 times the stock's average daily trading volume of about $4.5 billion this year. Leveraged ETF assets related to Samsung are approximately $12.4 billion, which is 176% higher than its average daily trading volume of about $4.5 billion.
In addition, the assets of the 2x leveraged long SK Hynix ETF listed in Hong Kong are approximately $13 billion, about twice the average daily trading volume of SK Hynix, making it the largest gap among all major stocks tracked by leveraged ETFs. For comparison, the assets of the Micron (MU) leveraged ETF are approximately $9.9 billion, well below its average daily trading volume of about $27.5 billion. The assets of leveraged ETFs for Tesla and Nvidia are approximately $6 billion and $5.6 billion respectively, both significantly lower than their average daily trading volumes of about $23.6 billion and $28.8 billion.
