South Korea's Chip Stock Leverage Concentration is Extremely High, with SK Hynix's Leveraged ETF's Assets Under Management Exceeding 4 Times Its Average Daily Trading Volume

BlockBeats News, July 5th, The Kobeissi Letter stated that the leverage level of South Korean chip stocks has spiraled out of control. The total assets under management for a single-stock leverage and inverse ETF tracking SK Hynix currently stand at around $19 billion, more than 4 times the average daily trading volume of approximately $4.5 billion for the stock this year.

Meanwhile, the assets under management for Samsung-related leveraged ETFs amount to around $12.4 billion, 176% higher than its approximately $4.5 billion daily trading volume. The Hong Kong-listed 2x long SK Hynix ETF has assets under management of around $13 billion, double the daily stock trading volume of SK Hynix, representing the largest disparity among stocks with leveraged ETF tracking.

In contrast, the assets under management for Micron (MU)-related leveraged ETFs amount to around $9.9 billion, below its approximately $27.5 billion daily trading volume; Tesla (TSLA) and NVIDIA (NVDA) leveraged ETFs have assets under management of approximately $6 billion and $5.6 billion, respectively, also significantly lower than their approximately $23.6 billion and $28.8 billion daily trading volumes. The concentration of leverage in South Korean chip stocks has reached an extreme level.