SK Hynix soared 13%, while the double long ETF plummeted 40%

By: rootdata|2026/06/10 04:45:01
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The leveraged ETF tracking chip giant SK Hynix, "KIM ACE SK Hynix Individual Stock Leveraged ETF," plummeted by 40% shortly after the market opened on Tuesday (the latest decline narrowed to about 30%), while during the same period, SK Hynix's stock price surged over 13%. Previously, this ETF had shown unusual volatility on Monday, when it soared by 50% at the close, while the underlying stock SK Hynix fell nearly 8%. The consecutive two days of "reverse bouncing" have intensified market scrutiny of the ETF manager, Korea Investment Management Co.

The company stated that the unusual situation of this $37 million fund initially observed on Monday stemmed from insufficient liquidity. Jung In Yun, CEO of Fibonacci Asset Management, said, "Such price imbalances are rare but not unprecedented. ETFs typically rely on market makers to ensure prices align with the underlying assets. However, during the closing auction phase on Monday, these safeguards may weaken, especially in niche products with limited trading volume."

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