Absolutely crazy? The total assets of leveraged ETFs tracking South Korean chip stocks have reached $31.4 billion, and SK Hynix–related product volumes are more than 4 times their average daily trading volume.

Odaily Planet Daily News: The Kobeissi Letter posted on the X platform, saying that the leverage level of Korean chip stocks is already at an out-of-control high level. The total assets of leveraged and inverse ETFs tracking SK Hynix’s single stock are approximately $19 billion, exceeding the stock’s average daily trading volume of about $4.5 billion this year by around 4 times. Leveraged ETFs related to Samsung have total assets of about $12.4 billion, which is 176% higher than its average daily trading volume of about $4.5 billion.

In addition, the 2x leveraged long SK Hynix ETF listed in Hong Kong has total assets of about $13 billion—around 2 times SK Hynix’s average daily trading volume—and represents the largest gap among all major stocks tracked by leveraged ETFs. For comparison, Micron (MU) leveraged ETFs have total assets of about $9.9 billion, far below its average daily trading volume of about $27.5 billion. The leveraged ETF assets for Tesla and Nvidia are approximately $6 billion and $5.6 billion, respectively, both significantly lower than their average daily trading volumes of about $23.6 billion and $28.8 billion.

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