BlockBeats News, July 5th, The Kobeissi Letter reported that the leverage level of South Korean chip stocks has spiraled out of control. The total assets under management of the single-stock leverage and inverse ETF tracking SK Hynix currently amount to around $19 billion, over four times the approximately $4.5 billion daily average trading volume of the stock this year.

Meanwhile, the assets under management of Samsung-related leverage ETFs amount to around $12.4 billion, 176% higher than its approximately $4.5 billion daily average trading volume. The assets under management of the 2x long SK Hynix ETF listed in Hong Kong amount to around $13 billion, double the daily stock trading volume of SK Hynix, representing the largest gap among major stocks with leverage ETF tracking.

In contrast, the assets under management of Micron (MU) related leverage ETFs amount to around $9.9 billion, lower than its approximately $27.5 billion daily average trading volume; the leverage ETFs related to Tesla (TSLA) and Nvidia (NVDA) amount to around $6 billion and $5.6 billion, respectively, also significantly lower than their approximately $23.6 billion and $28.8 billion daily average trading volumes. The concentration of leverage in South Korean chip stocks is extremely high.