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First show tonight! SK hynix’s listing in the US has sparked a boom in leveraged ETFs, with multiple products launching next week

2026-07-10·newswire-us-stock-094745

First show tonight! SK hynix’s listing in the US has sparked a boom in leveraged ETFs, with multiple products launching next week.

Tonight, South Korean memory chip giant SK Hynix will make its U.S. stock debut. This record-breaking listing in the United States has triggered a wave of leveraged investment craze: a number of leveraged ETFs linked to SK Hynix’s American Depository Receipts (ADRs) will land on Wall Street as soon as next week.

SK Hynix ADR will begin trading on Nasdaq on July 10 under the symbol "SKHYV". On Thursday, SK Hynix set the issuance price of its ADR at US$149, raising a total of US$26.5 billion. As SK Hynix is about to land on the U.S.

stock market, Wall Street ETF issuers are already gearing up: ETF issuers such as ProShares, Leverage Shares and Rex Shares are preparing to launch products that are twice as long as SK Hynix ADR, and some issuers are also preparing inverse products. At least six products will be launched next week, according to the publisher's website.

Leveraged exchange-traded products (ETPs) linked to SK Hynix are currently among the most popular in the industry, and they have a huge impact on the stock's movements in the Korean market.

In the rapidly developing ETP market in Hong Kong, China, the SK Hynix Double Leveraged ETF launched by CSOP Asset Management has become the largest of its kind in the world, with assets once exceeding US$16 billion. In the Korean market, ETFs linked to individual stocks such as SK Hynix are currently very popular.

In the US$4.3 trillion South Korean stock market, related leveraged ETFs, together with the two chip stocks they track (Samsung and SK Hynix), account for more than 70% of the turnover. This significantly amplified the volatility of Korean stocks. Recently, the Korean stock market has experienced frequent huge shocks.

Since the beginning of this year, the Korean stock market has triggered the "sidecar mechanism" (suspending programmed trading) more than 30 times, exceeding the 26 times during the 2008 financial crisis.

The market-wide circuit breaker mechanism (suspension of all transactions) was triggered 6 times, accounting for half of the total 12 times since the mechanism was implemented in 2000.

The extreme volatility of Korean stocks and the huge impact of individual stock leveraged ETFs have aroused the vigilance of the country’s regulatory authorities, and warnings have been issued recently.

Kim Yong-beom, chief secretary for presidential policy, said on Friday that South Korea's financial regulatory authorities are closely monitoring the impact of single stock leveraged ETFs on the market.

He said that South Korea’s Ministry of Strategy and Finance, the Bank of Korea, the Financial Commission and the Financial Supervisory Service will comprehensively evaluate the various impacts of single stock ETFs on the market since their listing in May this year. Regulators will also discuss and finalize whether new supporting regulations are needed.

"Retail investor behavior appears to be increasingly driven by momentum, with the growth of individual stock ETFs pushing up trading volume and volatility in large-cap stocks," said John Cho, portfolio manager for South Korea equities at J.P. Morgan Asset Management.

"The emergence of leveraged ETFs is not seen as a healthy signal as it may be indicative of retail investor behavior at the end of the cycle." Analysts say the concentration of investments in leveraged products on individual stocks has begun to affect the stocks they are designed to track.

A new wave of U.S.-listed leveraged ETPs means daily rebalancing flows will become larger, potentially exacerbating already high volatility. The scale of these leveraged products also makes it difficult to deliver on their promise of delivering double daily returns, increasing tracking error, industry research points out. "U.S.

investors may encounter the same tracking difficulties as Hong Kong, China, tracking SK Hynix's leveraged products." ETF analyst Rebecca Sin said. ""When demand significantly exceeds available inventory, ETP issuers may face difficulties in sourcing shares and maintaining effective hedges, potentially resulting in tracking errors with the underlying stocks.

The anomaly has sparked criticism of regulators for allowing such high-risk instruments to come to market, with one South Korean opposition lawmaker even calling for such products to be delisted. For issuers, the opportunity is clear given the overwhelming investor demand for leveraged products. As the dust settles on SK Hynix's $26.5 billion U.S.

listing - the largest ever by a foreign company - a whole new group of potential investors has opened up.

"I believe this product will be able to capture the pent-up demand from global investors for direct exposure to SK Hynix - a channel that cannot be fully provided by listing in South Korea alone," said Francis Oh, head of Asia business development at Rex. (

#Stocks #Semiconductors #IPO #Nasdaq

Full text

First show tonight! SK hynix’s listing in the US has sparked a boom in leveraged ETFs, with multiple products launching next week

Tonight, South Korean memory chip giant SK Hynix will make its U.S. stock debut. This record-breaking listing in the United States has triggered a wave of leveraged investment craze: a number of leveraged ETFs linked to SK Hynix’s American Depository Receipts (ADRs) will land on Wall Street as soon as next week. SK Hynix ADR will begin trading on Nasdaq on July 10 under the symbol "SKHYV". On Thursday, SK Hynix set the issuance price of its ADR at US$149, raising a total of US$26.5 billion. As SK Hynix is about to land on the U.S. stock market, Wall Street ETF issuers are already gearing up: ETF issuers such as ProShares, Leverage Shares and Rex Shares are preparing to launch products that are twice as long as SK Hynix ADR, and some issuers are also preparing inverse products. At least six products will be launched next week, according to the publisher's website. Leveraged exchange-traded products (ETPs) linked to SK Hynix are currently among the most popular in the industry, and they have a huge impact on the stock's movements in the Korean market. In the rapidly developing ETP market in Hong Kong, China, the SK Hynix Double Leveraged ETF launched by CSOP Asset Management has become the largest of its kind in the world, with assets once exceeding US$16 billion. In the Korean market, ETFs linked to individual stocks such as SK Hynix are currently very popular. In the US$4.3 trillion South Korean stock market, related leveraged ETFs, together with the two chip stocks they track (Samsung and SK Hynix), account for more than 70% of the turnover. This significantly amplified the volatility of Korean stocks. Recently, the Korean stock market has experienced frequent huge shocks. Since the beginning of this year, the Korean stock market has triggered the "sidecar mechanism" (suspending programmed trading) more than 30 times, exceeding the 26 times during the 2008 financial crisis. The market-wide circuit breaker mechanism (suspension of all transactions) was triggered 6 times, accounting for half of the total 12 times since the mechanism was implemented in 2000. The extreme volatility of Korean stocks and the huge impact of individual stock leveraged ETFs have aroused the vigilance of the country’s regulatory authorities, and warnings have been issued recently. Kim Yong-beom, chief secretary for presidential policy, said on Friday that South Korea's financial regulatory authorities are closely monitoring the impact of single stock leveraged ETFs on the market. He said that South Korea’s Ministry of Strategy and Finance, the Bank of Korea, the Financial Commission and the Financial Supervisory Service will comprehensively evaluate the various impacts of single stock ETFs on the market since their listing in May this year. Regulators will also discuss and finalize whether new supporting regulations are needed. "Retail investor behavior appears to be increasingly driven by momentum, with the growth of individual stock ETFs pushing up trading volume and volatility in large-cap stocks," said John Cho, portfolio manager for South Korea equities at J.P. Morgan Asset Management. "The emergence of leveraged ETFs is not seen as a healthy signal as it may be indicative of retail investor behavior at the end of the cycle." Analysts say the concentration of investments in leveraged products on individual stocks has begun to affect the stocks they are designed to track. A new wave of U.S.-listed leveraged ETPs means daily rebalancing flows will become larger, potentially exacerbating already high volatility. The scale of these leveraged products also makes it difficult to deliver on their promise of delivering double daily returns, increasing tracking error, industry research points out. "U.S. investors may encounter the same tracking difficulties as Hong Kong, China, tracking SK Hynix's leveraged products." ETF analyst Rebecca Sin said. ""When demand significantly exceeds available inventory, ETP issuers may face difficulties in sourcing shares and maintaining effective hedges, potentially resulting in tracking errors with the underlying stocks. The anomaly has sparked criticism of regulators for allowing such high-risk instruments to come to market, with one South Korean opposition lawmaker even calling for such products to be delisted. For issuers, the opportunity is clear given the overwhelming investor demand for leveraged products. As the dust settles on SK Hynix's $26.5 billion U.S. listing - the largest ever by a foreign company - a whole new group of potential investors has opened up.

"I believe this product will be able to capture the pent-up demand from global investors for direct exposure to SK Hynix - a channel that cannot be fully provided by listing in South Korea alone," said Francis Oh, head of Asia business development at Rex. (

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