The AI frenzy has birthed a massive capital magnet. On May 27, Bloomberg senior ETF analyst Eric Balchunas posted on X, marveling at the 2x Long SK Hynix ETF (ticker: 7709) listed in Hong Kong. Its assets under management have skyrocketed 10x this year, with daily trading volume exceeding $1 billion, making it the third-largest ETF in Hong Kong.
AUM Jumps 10x, Now 8.5% of Hong Kong ETF Market
Balchunas highlighted that this leveraged ETF now accounts for 8.5% of total Hong Kong ETF assets. He compared it to the U.S. market: "It's crazy. This is like having a US ETF at $1.3 trillion (which doesn't exist there). Also, its daily volume of $1B is like a US ETF trading $150B a day, which has never happened."
SK Hynix HBM Market Share 57%, Stock Up 1,000% in a Year
The ETF's explosive growth rests entirely on the fundamentals of SK Hynix. The company dominates the high-bandwidth memory (HBM) market with roughly a 57% share. HBM is vital for Nvidia's high-end AI training and data center GPUs. After the company reported record revenue and profit in Q1 2026, expectations of supply shortages for high-end memory chips drove a massive inflow into its stock.
On the KOSPI (ticker: 000660.KS), SK Hynix shares have been a 2026 marvel: year-to-date up 244%–245%, up over 1,000% in the past year, and over 300% in six months. The stock recently reached around 2,243,000 KRW, pushing its market cap above $1 trillion, making it one of the world's most valuable tech giants.
Risk: Leveraged ETF Volatility
While AI demand fundamentals are strong, the semiconductor industry is cyclical. Geopolitical risks and current extreme valuations, especially for leveraged ETFs like 7709.HK, pose huge volatility risks during market corrections. Investors should proceed with caution.