Complete madness? Total assets of leveraged ETFs tracking South Korean chip stocks reach $31.4 billion, with SK Hynix-related product size exceeding 4 times its average daily trading volume

According to Odaily, The Kobeissi Letter posted on X platform, stating that the leverage level of South Korean chip stocks is at an uncontrollably 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. Samsung-related leveraged ETF assets are approximately $12.4 billion, 176% higher than its average daily trading volume of about $4.5 billion.

Additionally, the 2x leveraged long ETF on SK Hynix listed in Hong Kong has assets of about $13 billion, roughly 2 times SK Hynix's average daily trading volume, the largest gap among all major stocks tracked by leveraged ETFs. In comparison, Micron (MU) leveraged ETF assets are about $9.9 billion, far below its average daily trading volume of approximately $27.5 billion; Tesla and NVIDIA leveraged ETF assets are about $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.