Leveraged exchange-traded funds linked to South Korean chipmakers Samsung Electronics and SK Hynix have posted nearly $1 billion in outflows this month, according to BlockBeats. The shift comes as investor enthusiasm around artificial intelligence trades cools and regulators in South Korea step up measures aimed at curbing demand for these products. So far in August, leveraged products tracking Samsung Electronics have recorded $381 million in outflows, while related products tied to SK Hynix have seen $601 million leave. That marks the first monthly outflow for these products since they were launched at the end of May. The report also points to the broader sell-off in AI trades seen in July, when South Korea’s Kospi index suffered what it described as a historic drop of 22% for the month. After that move, South Korean regulators raised the minimum margin requirement for new investors buying such products and also required a five-day simulated trading period.
Leveraged exchange-traded funds linked to South Korean chipmakers have seen nearly $1 billion in outflows this month as enthusiasm around artificial intelligence trades fades and regulators tighten measures aimed at restraining demand, according to BlockBeats.
As of now, leveraged products tracking Samsung Electronics have recorded $381 million in August outflows, while related products tied to SK Hynix have posted $601 million in outflows. It is the first monthly outflow for these products since their launch at the end of May.
BlockBeats said the retreat followed a July sell-off in global AI trades, a period when South Korea’s Kospi index went through a historic slump and fell 22% for the month. After that, South Korean regulators raised the minimum margin requirement for new investors buying such products and required them to complete five days of simulated trading.
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