GraniteShares plans to create a new exchange-traded fund (ETF) based on SK Hynix shares to trade on U.S. exchanges. The money will allow US investors access to the fast-growing Asian memory chip manufacturer whose stock price rose more than 300% in 2023 due to growing demand for artificial intelligence products.
The proposed funds — a long two-time daily ETF (SKUU) and a short two-day ETF (SKDD) — would provide twice the daily performance of SK Hynix shares in either direction, according to ETF Tracker on
The rise in AI chips has turned SK Hynix into an ETF favorite
SK Hynix, the dominant supplier of high-bandwidth memory (HBM) chips used in… Artificial intelligence data centersclosed trading on June 22, 2026, with a market capitalization of approximately US$1.35 trillion, briefly surpassing the market capitalization of Samsung Electronics’ common shares to become South Korea’s most valuable listed company by that measure.
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GraniteShares launches first US-listed leveraged SK Hynix ETFs:
-GraniteShares 2X Long SK Hynix Daily ETF Show $
-GraniteShares 2X Short SK Hynix Daily ETF $SKDDShow $ It aims to double the daily traffic of SK Hynix, the South Korean memory chip maker, while… pic.twitter.com/xePindWFLV— ETF Tracker (@TheETFTracker) June 26, 2026
The tremendous performance of the company’s shares has led to a wave of leveraged products in Asia and Europe. In Hong Kong, CSOP Asset Management’s SK Hynix ETF has swelled to more than $16.8 billion in assets under management, overtaking Hong Kong’s Tracker Fund to become the city’s largest ETF. CSOP is back, analyst Rebecca Sen said Nearly 900% since the beginning of the year.
On the other hand, Leverage Shares started offering an exchange-traded product (ETP) of 3x SK Hynix on the London Stock Exchange on June 12. GraniteShares’ U.S. filing adds another venue, and another level of leverage, to a rapidly expanding global ecosystem of single equity derivatives built around a single chip manufacturer.
GraniteShares is betting on SK Hynix demand
GraniteShares is not alone as six other US asset managers (Tuttle Capital (T-REX), Themes ETFs, ProShares, Direxion, Defiance ETFs, and Amplify ETFs) have filed for SEC registration for leveraged ETFs based on SK Hynix’s Nasdaq-listed charted American Depositary Receipts (ADRs). The effort is part of one of the fastest group-wide product launches for a single foreign semiconductor stock in history, and all 17 providers are ordering various leveraged and inverse products that will likely be released before the ADR is issued.
And based on SEC filings, the way these providers compete is clear. In most cases, they compete on the basis of brand, launch timing, and distribution rather than leverage ratios. While GraniteShares is trying to gain a first mover advantage by issuing its long 2x (SKUU) and short 2x (SKDD) funds, other providers want to wait for an ADR listing before offering their products. This rapid cycle of competitive product launches is consistent with previous standout companies such as Nvidia and Tesla that also saw greater amounts of capital and larger volumes due to early and earlier exporters than later entrants.
The rush to place the order reflects expectations that SK Hynix could become the next major trading vehicle for single-stock ETFs for U.S. semiconductor investors. Kim Sun-woo, a researcher at Meritz Securities, told Global News Top that the company’s valuation discount for Micron Technology could narrow once US investors get direct access to ADR. SK Hynix currently trades at roughly seven to eight times forward earnings, versus about 11 times Micron. If this valuation gap is compressed as international ownership expands, issuers of leveraged ETFs will benefit from higher trading activity regardless of whether investors are long or short.
South Korean regulators express 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 Supervision Authority, said in a press conference on June 22 that approvals for leveraged ETFs linked to Samsung Electronics and SK Hynix were “hastily prepared.” According to Reuters.
“I probably should have lied on the floor to stop him,” he told me. “I personally regret (not doing so).”
The products contributed to increased volatility and helped push margin-funded retail stock positions to a record 60 trillion won ($39 billion) by the end of May, the regulator said. Lee said the watchdog was considering stabilization measures, but declined to provide details.
Reuters reported that South Korea’s KOSPI index rose more than 110% in 2026, with Samsung Electronics and SK Hynix representing more than half of its weight.
