Completely crazy? The total assets of leveraged ETFs on South Korean chip stocks have reached $31.4 billion, and the scale of SK Hynix-related products exceeds 4 times its average daily trading volume.

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ME News, July 5 (UTC+8), The Kobeissi Letter posted on X platform that the leverage level of Korean semiconductor stocks is at an uncontrollably high level. The total assets of single-stock leveraged and inverse ETFs tracking SK Hynix are approximately $19 billion, more than four times the stock's average daily trading volume of about $4.5 billion this year. Samsung-related leveraged ETF assets are approximately $12.4 billion, 176% higher than its average daily trading volume of about $4.5 billion. In addition, the assets of the 2x leveraged long SK Hynix ETF listed in Hong Kong are approximately $13 billion, about twice SK Hynix's average daily trading volume, the largest gap among all major stocks tracked by leveraged ETFs. For comparison, Micron (MU) leveraged ETF assets are approximately $9.9 billion, far below its average daily trading volume of about $27.5 billion; Tesla and Nvidia leveraged ETF assets are approximately $6 billion and $5.6 billion respectively, both significantly below their average daily trading volumes of about $23.6 billion and $28.8 billion. (Source: ODAILY)
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