South Korea's Chip Stock Leverage Concentration Reaches Extreme Levels, with SK Hynix's Leveraged ETF Asset Size Exceeding 4 Times Its Average Daily Trading Volume

BlockBeats News, July 5th, The Kobeissi Letter published an article stating that the leverage level of South Korean chip stocks has spiraled out of control. The total assets under management for single-stock leverage and inverse ETFs tracking SK Hynix currently amount to approximately $19 billion, more than 4 times the company's average daily trading volume of about $4.5 billion this year.

Meanwhile, Samsung-related leverage ETFs have around $12.4 billion in assets under management, 176% higher than its roughly $4.5 billion daily trading volume. The assets under management of a 2x long SK Hynix ETF listed in Hong Kong are approximately $13 billion, double the daily stock trading volume of SK Hynix, making it the stock with the largest gap among those tracked by leveraged ETFs.

In contrast, Micron (MU)-related leverage ETFs have about $9.9 billion in assets under management, lower than its approximately $27.5 billion daily trading volume; Tesla (TSLA) and NVIDIA (NVDA) leverage ETFs have assets under management of around $6 billion and $5.6 billion, respectively, also significantly lower than their daily trading volumes of about $23.6 billion and $28.8 billion. The concentration of leverage in South Korean chip stocks is extremely high.