Monitoring data from Hyperinsight showed that, as of publication, SK Hynix’s Korea-mapped contract SKHX on Hyperliquid was trading at $1,069.5, while the U.S. ADR contract SKHY was at $137.91. On a converted basis, the ADR-equivalent price was about $1,379.1, leaving SKHY at a 28.9% premium to SKHX. That spread had narrowed by roughly 4 percentage points from about 33.0% a day earlier. Over the same period, SKHX fell 13.5% and SKHY dropped 16.2%.
A whale wallet beginning with 0x434, which had previously put on a spread-widening trade by shorting SKHX and going long SKHY, closed both legs ahead of earnings. The combined position produced an estimated profit of about $442,700. At 15:00 today, the trader sold 20,000 SKHY long contracts at an average price of about $137.6, for roughly $2.753 million in turnover, realizing a loss of about $133,000. Around the same time, the trader covered 4,500 SKHX short contracts at an average price of about $1,071.1, for about $4.82 million in turnover, booking a profit of roughly $576,000.
Based on the entry prices, the implied ADR premium was about 20.4%, while the exit prices pointed to about 28.5%, meaning the spread-widening thesis had been monetized. Hyperinsight also noted the structure was not dollar-neutral, as the SKHY long covered only about 44.4% of the SKHX short. SK Hynix is scheduled to release second-quarter earnings at 9:00 a.m. Korea time on July 29, or 8:00 a.m. Beijing time. The whale exited about 17 hours before the report.
According to BlockBeats on July 28, monitoring data from Hyperinsight showed that, as of publication, SKHX, the SK Hynix Korea stock-mapped contract on Hyperliquid, was trading at $1,069.5, while SKHY, the U.S. ADR contract, was at $137.91. On a converted basis, the ADR-equivalent price was about $1,379.1, putting the premium over SKHX at 28.9%.
That premium was down by roughly 4 percentage points from about 33.0% a day earlier. Over the same period, SKHX fell 13.5% and SKHY declined 16.2%.
0x434 whale closes both legs before earnings
A whale wallet beginning with 0x434 had previously been running a spread-widening trade by shorting SKHX and going long SKHY. The trader has now closed both legs ahead of the earnings release, with the combined position posting an estimated profit of about $442,700.
- At 15:00 today, the trader sold 20,000 SKHY long contracts at an average price of about $137.6, with turnover of roughly $2.753 million, realizing a loss of about $133,000.
- At around the same time, the trader covered 4,500 SKHX short contracts at an average price of about $1,071.1, with turnover of about $4.82 million, booking a profit of roughly $576,000.
Using the average entry prices, the implied ADR premium in the cost basis was about 20.4%. Based on the average exit prices, the premium was about 28.5%, which means the spread-widening trade had already been realized.
The position was not fully hedged
Hyperinsight noted that the structure was not an equal-value hedge. The original SKHY long covered only about 44.4% of the SKHX short, and part of the profit came from the decline in the Korea stock-mapped contract.
Earnings release due on July 29
SK Hynix is set to release its second-quarter results at 9:00 a.m. Korea time on July 29, or 8:00 a.m. Beijing time. The whale finished exiting about 17 hours before the report, a move that showed it had stopped betting on a further expansion in the premium, or was guarding against more spread compression during the earnings window.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
