Wall Street hurries to introduce ETFs linked to SK Hynix following Nasdaq launch

A minimum of 10 fund managers, including prominent issuers Direxion and ProShares, have submitted registrations to introduce single-stock exchange-traded funds (ETFs) that follow SK Hynix, right after the chipmaker starts trading in the US, based on regulatory documents.

The majority of the filings concerning SK Hynix are aimed at leveraged and inverse strategies that track the Korean chipmaker’s Nasdaq-listed American Depositary Receipts (ADRs).

SK Hynix is expected to launch on the Nasdaq on Friday (July 10) after securing $26.5 billion through its US listing this week.
Among the issuers, ThemesETFs intends to roll out a 2x leveraged ETF and a 1x short ETF on Cboe on July 13 under its Leverage Shares brand, per a press release.

CorgiFunds has also applied to list a 2x leveraged SK Hynix ETF on the Cboe BZX Exchange, with trading slated to commence on the same day, according to the fintech company’s announcement.

Direxion is additionally looking to introduce a 2x leveraged SK Hynix ETF, which it stated will “begin trading shortly after SK Hynix’s ADR lists on Nasdaq”.

Leveraged ETFs that track SK Hynix shares in South Korea have previously been noted as influencing the local market, with the head of the nation’s market regulator expressing regret over the approval of such products.