- At least 10 fund managers registered to launch single-stock ETFs after SK Hynix's US debut
- Most filings involve leveraged and inverse ETFs tracking SK Hynix's Nasdaq-listed ADRs
- SK Hynix raised $26.5 billion and starts trading on Nasdaq on July 10 at $149 per ADR
Regulatory filings show that at least 10 fund managers, including significant issuers Direxion and ProShares, registered to launch single-stock exchange-traded funds (ETFs) following SK Hynix soon after the chipmaker began trading in the US.
Leveraged and inverse strategies tracking the Korean chipmaker's Nasdaq-listed American Depositary Receipts (ADRs) make up nearly all of the filings.
After raising $26.5 billion through its US offering, SK Hynix is scheduled to start trading on the Nasdaq on Friday, July 10, according to a report by Reuters.
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At a premium of $149 per ADR, SK Hynix's first U.S. offering was more than seven times oversubscribed, demonstrating an unquenchable investor desire for direct chip manufacturing exposure.
With more than 50% of the global market, SK Hynix is the top manufacturer of High Bandwidth Memory (HBM) chips. It is a stand-in for the larger artificial intelligence industry since it is a vital supplier for Nvidia's AI accelerators.
According to a news statement, ThemesETFs, one of the issuers, intends to introduce a 2x leveraged ETF and a 1x short ETF on Cboe on July 13 under its Leverage Shares brand.
According to a press statement from the fintech startup, CorgiFunds has also applied to launch a 2x leveraged SK Hynix ETF on the Cboe BZX Exchange, with trading set to start that same day.
Additionally, Direxion stated that it will "begin trading shortly after SK Hynix's ADR lists on Nasdaq" to introduce a 2x-leveraged SK Hynix ETF.
The head of South Korea's market regulator expressed sorrow for licensing leveraged exchange-traded funds (ETFs) that follow SK Hynix shares, which have previously been blamed for distorting the local market.
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U.S. stock futures were impacted on Friday by growing geopolitical tensions across the world and the excitement surrounding South Korean chipmaker SK Hynix's Nasdaq debut. Following Wall Street's recent surge, the S&P 500 and Nasdaq saw a slight decline, according to Reuters.
Friday saw a little increase in Dow futures, but S&P 500 and Nasdaq futures fell after the two benchmark indexes finished the previous session higher, thanks to a surge in semiconductor stocks.
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