GraniteShares brings first U.S. leveraged SK Hynix ETFs closer
GraniteShares plans to create new leveraged exchange-traded funds (ETF) based on SK Hynix stock for trading on U.S. exchanges. These funds will allow U.S. investors access to a rapidly growing Asian memory chip manufacturer whose share price has increased more than 300% in 2023 because of increasing demand for artificial intelligence products.
The proposed funds—a 2x long daily ETF (SKUU) and a 2x short daily ETF (SKDD)—would deliver twice the daily performance of SK Hynix shares in either direction, according to ETF Tracker on X. A prospectus filed with the U.S. Securities and Exchange Commission in March described the proposed ETFs, while subsequent EDGAR filings show GraniteShares filed three delaying amendments, the latest setting an effective date of July 2, 2026.
AI chip rally turns SK Hynix into ETF favorite
SK Hynix, a dominant supplier of high-bandwidth memory (HBM) chips used in AI data centers, closed trading on June 22, 2026, with a market capitalization of roughly $1.35 trillion, briefly surpassing Samsung Electronics’ common-share market value to become South Korea’s most valuable listed company by that measure.
The company’s explosive stock performance has already spawned a wave of leveraged products in Asia and Europe. In Hong Kong, CSOP Asset Management’s 2x leveraged SK Hynix ETF has ballooned to more than $16.8 billion in assets under management, overtaking the Tracker Fund of Hong Kong to become the city’s largest ETF. Analyst Rebecca Sin said the CSOP product had returned close to 900% year-to-date.
On the other hand, Leverage Shares started offering a 3x long SK Hynix exchange-traded product (ETP) on the London Stock Exchange on June 12. GraniteShares’ U.S. filing adds another venue, and another leverage tier, to a rapidly expanding global ecosystem of single-stock derivatives built around one chipmaker.
GraniteShares bets on SK Hynix demand
GraniteShares is not standing alone as six more U.S. asset managers (Tuttle Capital (T-REX), Themes ETFs, ProShares, Direxion, Defiance ETFs, and Amplify ETFs) filed for SEC registration of leveraged ETFs based on the planned Nasdaq-listed American depositary receipts (ADRs) of SK Hynix. This effort is part of one of the fastest group-wide product launches for a single foreign semiconductor stock in history, and all seven providers are requesting ten different leveraged and inverse products that are likely to be issued before the ADR is released.
Based on SEC filings, the manner in which these providers are competing is evident. In most cases, they are competing on the basis of brand, timing of the launch, and distribution instead of leverage ratios. Whereas GraniteShares is attempting to capture the first mover advantage through issuance of its 2x long (SKUU) and 2x short (SKDD) funds, other providers wish to wait for the ADR to be listed before introducing their products. This rapid cycle of competitive product introduction is consistent with previous high-profile companies like Nvidia and Tesla that also saw larger amounts of capital and higher volumes due to the first and early issuers compared to later entrants.
The rush to file reflects expectations that SK Hynix could become the next major single-stock ETF trading vehicle for U.S. semiconductor investors. Kim Sun-woo, a researcher at Meritz Securities, told Global News Top that the company’s valuation discount to Micron Technology could narrow once U.S. investors gain direct ADR access. SK Hynix currently trades at roughly seven to eight times forward earnings, versus around eleven times for Micron. If that valuation gap compresses as international ownership broadens, leveraged ETF issuers stand to benefit from higher trading activity regardless of whether investors are positioned long or short.
South Korean regulators voice concern
The proliferation of leveraged products tied to Korean chip stocks has drawn scrutiny at home. Lee Chan-jin, governor of South Korea’s Financial Supervisory Service, said at a June 22 press conference that approvals for leveraged ETFs linked to Samsung Electronics and SK Hynix had been “prepared hastily,” according to Reuters.
“Maybe I should have lain down on the floor to block it,” Lee said. “I personally regret (I didn’t).”
The regulator said the products had contributed to heightened volatility and helped push margin-financed retail equity positions to a record 60 trillion won ($39 billion) by the end of May. Lee said the watchdog was considering stabilizing measures but declined to provide specifics.
South Korea’s KOSPI index has risen more than 110% in 2026, with Samsung Electronics and SK Hynix accounting for over half its weighting, Reuters reported.
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