ADR contract implies a sharp premium to Korean shares
BlockBeats reported on July 13, citing Hyperinsight data, that the SK Hynix Korean share contract SKHX on Hyperliquid was trading at $1,245.4 as of publication, with about $1.021 billion in 24-hour volume. The U.S. ADR contract, SKHY, was quoted at $153.69, with roughly $136 million in 24-hour volume.
Based on the conversion of 10 ADRs for one Korean common share, SKHY implies an equivalent price of $1,536.9. That is $291.5 above SKHYNIX, leaving the U.S. ADR at a premium of about 23.41% to the Korean share contract. On the reverse calculation, the Korean share was trading at a discount of about 18.97% to the ADR.
Funding rates work against convergence positioning
Funding data shows SKHYNIX at +0.06132% per hour, which means longs pay shorts. SKHY was at -0.00463% per hour, meaning shorts pay longs. The gap between the two stood at about 0.06595 percentage points.
That setup means a trader running a convergence position by going long SKHYNIX and short SKHY would currently be paying funding on both legs. The reverse trade would collect funding on both sides, but it would amount to a bet that the ADR premium keeps widening rather than narrowing.
Two whale addresses are still positioned for spread compression
Even with that funding structure, two large visible addresses were still running representative convergence trades.
An address beginning with 0x257 was long 2,500.42 SKHX at 10x leverage, with a position size of about $3.115 million. The same address was short 31,031.66 SKHY at 10x leverage, with a size of about $4.776 million. The two-sided position totaled about $7.891 million and was showing a combined floating profit of roughly $339,000, making it the largest visible convergence trade.
An address beginning with 0xf517 was long 2,145.256 SKHX at 10x leverage and short 22,223.39 SKHY at 5x leverage. Its quantity ratio was about 1:10.36, the closest among the visible positions to the 1:10 ADR conversion. The combined size was about $6.093 million, and the position was showing a floating loss of roughly $389,000.