Two U.S.-Listed SK Hynix Leveraged ETFs to Delist After Just 3 Months

Two leveraged exchange-traded funds tied to SK Hynix and listed in the US are set to be delisted about three months after launch.

Bloomberg reported on October 26 that ETF issuer Tradr ETFs plans to delist two funds offering 2x bullish and bearish exposure to SK Hynix and liquidate them around November 12.

The funds are the Tradr 2X Long SK Hynix Daily ETF (SKHA) and the Tradr 2X Short SK Hynix Daily ETF (SKHN). They are structured to deliver twice the daily return of SK Hynix American depositary receipts in long and inverse form, respectively.

The ETFs were launched on July 28, shortly after SK Hynix listed its ADRs in the US. At the time, enthusiasm for artificial intelligence semiconductor investments also led major issuers including ProShares and Direxion to roll out leveraged SK Hynix-related products.

Demand for such trades has recently cooled as concerns mount over funding costs and profitability tied to investment in AI infrastructure. SK Hynix shares listed in South Korea are down 56% from the record high reached this year.

Performance has also been weak. Since launch, SKHA has fallen more than 5%, while SKHN, which bets on a decline in the stock, has dropped 42%. That contrasts with a gain of about 5% in SK Hynix ADRs over the same period.

Assets under management have also fallen sharply as investors pulled back. The two ETFs now hold a combined roughly $1.3 million, down more than 60% from their peak.

Meanwhile, growing volatility in AI-related stocks is prompting regulatory moves targeting leveraged ETFs. South Korean financial authorities have recently tightened regulations on leveraged products that amplify stock-price swings.