A flood of fund managers are racing to get exchange-traded funds tied to SK Hynix into the market just as the South Korean chipmaker prepares to make its U.S. trading debut, according to regulatory filings.
At least 10 fund managers — including major issuers Direxion and ProShares — have submitted registration filings to list single-stock ETFs that would track SK Hynix once the company begins trading in the United States. Nearly all of the filings involve leveraged or inverse strategies tied to the chipmaker’s American Depositary Receipts, which are set to list on the Nasdaq.
SK Hynix is scheduled to begin trading on the Nasdaq on Friday, following a massive capital raise of $26.5 billion earlier this week.
Among those moving quickly is ThemesETFs, which plans to launch a 2x leveraged ETF and a 1x short ETF on the Cboe exchange on July 13 under its Leverage Shares brand, the company announced in a press release.
CorgiFunds has also filed to list a 2x leveraged SK Hynix ETF on the Cboe BZX Exchange, with trading expected to begin on the same date, according to the fintech firm.
Direxion is likewise pursuing a 2x leveraged SK Hynix ETF. The company said in a press release that it will “begin trading shortly after SK Hynix’s ADR lists on Nasdaq.”
The rush comes with some caution in the background. Leveraged ETFs tracking SK Hynix’s shares on the South Korean market have already drawn scrutiny, with the head of that country’s market regulator publicly stating regret over having approved them, citing concerns about their distorting effect on the Seoul market.
