Using TSMC as a Benchmark to Measure Micron's ADR High Premium, $32.4 Million Converging Position Still Bi-Directionally Pays a Funding Rate

BlockBeats News, July 15th, according to Hyperinsight monitoring, Hyperliquid shows that SK Hynix (SKHY) on the NYSE is priced at $181.58, and SK Hynix (SKHX) on the KRX is priced at $1,358.50. With each SK Hynix ADS representing 0.1 share of the KRX stock, the current on-chain ADR premium is about 33.7%.

The 24-hour trading volume of SKHY and SKHX is approximately $450 million and $1.213 billion, with open interest of about $121 million and $425 million, respectively. The total trading volume of the two assets is about $1.663 billion, with open interest of around $546 million.

For reference, TSMC's ADR is priced at $420.39, TSMC's stock on the TWSE is priced at 2,440 NTD, with an exchange rate of about 32.16, and each ADR corresponds to 5 shares of the TWSE stock. The current ADR premium for TSMC is about 10.8%, while Hynix's current premium is approximately 3.1 times that.

In history, during the dot-com bubble, TSMC's ADR premium increased from about 70% to nearly 90%; in June 2000 when TSMC issued new ADS, the officially disclosed issuance premium still reached 43% (according to SEC filing). In comparison, Hynix's current 33.7% premium is about 78% of TSMC's issuance premium back then, but only four to five times that of the bubble's peak.

Historically, TSMC's ADR premium during the dot-com bubble period increased from about 70% to close to 90%; when issuing ADS in June 2000, TSMC's officially disclosed issuance premium still reached 43%. By comparison, Hynix's current 33.7% premium is equivalent to about 78% of TSMC's issuance premium back then, but still only four to five times the peak of the bubble.

Larger funds have formed two sets of opposite combinations around this price difference. Five addresses betting on convergence (long SKHX, short SKHY) hold a total position of about $32.4 million, with a total unrealized loss of about $1.117 million; only 1 address betting on divergence (long SKHY, short SKHX) holds about $9.719 million, with unrealized gains of about $0.127 million. The top positions are as follows:

Convergence Direction:

Address starting with 0xf517: Bilateral scale of about $11.181 million, unrealized loss of about $0.601 million, SKHY to SKHX quantity ratio of approximately 15.9:1;

Address starting with 0x2577: Bifurcation scale of approximately $8.008 million, unrealized loss of approximately $0.285 million, quantity ratio of approximately 17.7:1.

Expansion Direction:

Address starting with 0x434f: Short SKHX with 4x leverage, long SKHY with 8x leverage, bifurcation scale of approximately $9.71 million, unrealized gain of approximately $0.127 million; quantity ratio of approximately 3.6:1, maintaining a net long position in Micron.

The funding rate is also on the expansion side: SKHX has an hourly funding rate of approximately +0.00773%, SKHY is approximately -0.00264%, both sides of the convergence combination need to pay the funding rate, based on the current positions estimated that the total hourly payment for the top 5 addresses is approximately $1,453; the expansion combination allows both sides to receive, earning about $588 per hour. Convergent transactions are currently experiencing a dual consumption of "unrealized loss + both sides paying funding."