South Korea's Chip Leveraged ETF Trading Volume Drops to 4% Peak, Mandatory Simulation Trading Forces Retail Investors Out
On August 30, the trading volume of Samsung Electronics and SK Hynix's double single-stock leveraged ETFs has dropped to 4% of the peak in June, with related products possibly recording their first monthly net outflow since launch in August. Since July, South Korea has been tightening trading rules, with the mandatory simulation trading requirement that took effect on August 19 being considered a significant reason for the decline in retail participation.
According to the new regulations, investors must complete a 5-day simulation trading course, downloading a program that only supports Windows systems on their computers, and trading with virtual funds for at least 1 hour each day. The system provides investors with 100 million won in virtual funds to demonstrate the risks of leveraged products and "volatility decay." Investors must also meet a minimum cash deposit requirement of 30 million won. The Korea Exchange has stated that there are currently no plans to launch a mobile simulation trading platform.
The single-stock leveraged ETFs related to Samsung Electronics and SK Hynix were launched in May this year, originally aimed at attracting retail funds back to the South Korean domestic market. During peak trading periods, these leveraged ETFs accounted for over 80% of the total trading volume in the South Korean stock market, along with the stocks of the two chip companies, leading to significant market price fluctuations.
Data shows that the related ETFs experienced a total net outflow of about $1 billion in August, with assets under management dropping from a peak of $11.4 billion in late June to $5 billion as of August 27. In addition to regulatory restrictions, concerns about high capital expenditures and commercialization prospects in the AI industry have triggered multiple rounds of global tech stock sell-offs, also contributing to the decline in asset size.
Analysts indicate that as regulators continue to tighten rules, related fund outflows may persist in the short term. The cooling of trading activity has also alleviated market volatility, with the volatility index of the Korea Composite Stock Price Index dropping from 97 in late June to about 50, marking a 4-month low. The benchmark index of the South Korean stock market has risen 61% this year, but it is still 25% lower than the historical high set two months ago.
-- Price
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.
You may also like

Qualcomm Chip Prices Increase Starting September 1

Surge in IPOs in China: AI and Robotics Companies Lead Debuts in Shanghai and Hong Kong

Changxin Begins Small-Scale Production of HBM3E, Plans to Expand Output by 2027

Rockchip Stock Price Hits Limit Up Due to Microduck Sales Surge

SemiAnalysis: Samsung Leads HBM4 Technology, SK Hynix and Micron Face Challenges

Jensen Huang: AI is Bringing Manufacturing Back to the U.S.

ASUS and MSI's RTX Spark First Batch Sold Out

SK Hynix CEO Predicts Memory Chip Shortage Will Last Until 2030

The Similarities and Differences of Meme from a Long-Cycle Perspective

SEC novel ETF review draws opposition from crypto firms

Digital Asset Market Clarity Act: Can the Senate Crash Bitcoin by 25%?

August Cryptocurrency Security Incident Report: Total Loss of $215 Million, Price Manipulation and Governance Vulnerabilities as Major Attack Methods

AI: The Next Billion Crypto Users Will Not Be Human

September 2026 Crypto Market Outlook: Bitcoin, CPI, Fed Rate Hike Odds and WEEX Mini App Rewards

Cronos' Single-Player Philosophy: Theft Is No Big Deal, Just Roll Back

Cardano clears key voting thresholds for constitutional committee renewal by 0.18% margin

AI Networking (Broadcom/AVGO) and Space Tech (RKLB): The Impact of TradFi Megatrends on the Cryptocurrency Market

Digital Ruble, Cryptocurrency Law, and Bitcoin: Key Topics of the "RBC Crypto" Forum

Prospect Markets, Crypto.com seal deal for U.S. prediction markets platform

Real Rates Under Pressure: The Scenario That Could Propel Bitcoin

Sberbank Predicts $46 Billion in Cryptocurrency Trading in the First Year at Russia's Regulated Exchange

Invisible Liquidity: Does the Official M2 Deceive the State and the Market?

$90 Trillion Crypto Perpetual Market: Former Regulators Want to Bring It Back to the U.S.

Options Surpass Futures for the First Time: What Changes Are Brewing in Crypto Derivatives?

SNDK Stock Trading Rewards: Share $100K on WEEX

When AI Agents Gain On-Chain Execution Authority: Who Verifies the Information They See and the Commands They Issue?

NVDA, TSLA & AMD Trading Rewards: Share $100K on WEEX

Farewell to 'Air Tokens': The Crypto Industry Initiates a Reform Wave in Token Economics

How Much of the $1.5 Billion Can Be Recovered? The Realistic Boundaries and Industry Insights of Bybit's Lawsuit Against North Korea









