Total Madness? Total assets of leveraged ETFs tracking South Korean chip stocks reach $31.4 billion, with the size of SK Hynix-related products exceeding four times its average daily trading volume.

Svmuu News: The Kobeissi Letter posted on X, stating that leverage levels in South Korean chip stocks have reached uncontrollably high levels.The total assets of single-stock leveraged and inverse ETFs tracking SK Hynix amount to approximately $19 billion, more than four times the stock’s average daily trading volume of about $4.5 billion this year.Assets in Samsung-related leveraged ETFs total approximately $12.4 billion, which is 176% higher than the stock’s average daily trading volume of about $4.5 billion.
In addition, the Hong Kong-listed 2x leveraged long SK Hynix ETF has assets of approximately $13 billion, roughly twice SK Hynix’s average daily trading volume—the widest gap among all major stocks tracked by leveraged ETFs.By comparison, the Micron (MU) leveraged ETF has assets of approximately $9.9 billion, far below its average daily trading volume of about $27.5 billion; the Tesla and NVIDIA have assets of approximately $6 billion and $5.6 billion, respectively, both significantly lower than their average daily trading volumes of approximately $23.6 billion and $28.8 billion.