leveraged ETFs

Bitcoin

2026-08-08 06:56:25

Garrett Jin keeps his $60,000 BTC entry view and avoids chasing AI memory stocks higher

Garrett Jin, described by Odaily as the representative of the "1011 insider whale," said in his latest weekly market note that he is keeping the Bitcoin position built around $60,000 and has not changed that view since BTC neared a low of roughly $57,700 in July. In his view, the market has continued to meet bottoming conditions since that point. Jin also said gold, which had previously remained on his watchlist, has now broken out of its consolidation range and shifted into a long-term allocation opportunity, with the thesis still tied to a longer-term weakening trend in the U.S. dollar. On AI memory, he said he had earlier advised gradual positioning in memory-chip names and buying on dips, but the market moved higher without the pullback he had expected. He therefore sold half of a rebound position, not because the demand thesis had changed, but because he sees the latest short-term move as being driven more by capital structure factors. Jin added that risks tied to Korean leveraged ETFs have not fully cleared, and while JPMorgan said related exposure had fallen 66% from its peak, his own estimate puts the drop at about 38%, largely because of lower net asset values rather than investor exits.

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South Korea s

2026-08-08 06:16:40

Korean AI stock rout hits leveraged investors as margin pressure builds

South Korea’s AI-driven equity rally has gone into reverse, leaving retail traders who crowded into semiconductor names and leveraged products facing steep losses and, in some cases, forced liquidation risk. Since July 2026, the Korean stock market has seen a sharp correction. Data cited by BlockBeats showed the Korea Composite Index falling from a peak of 9,385.59 on June 19 to a low of 5,262.77 on July 29, a drop of nearly 44% in just over a month. Chipmakers have been at the center of the sell-off. SK Hynix fell from a June 25 high of 2.987 million won to a July 29 low of 1.287 million won, marking a maximum drawdown of about 57%, while Samsung Electronics posted a peak-to-trough decline of more than 49% over the same period. The reversal has been especially painful for retail investors who had used 2x long single-stock ETFs and margin financing to chase gains in SK Hynix and Samsung. According to Shenwan Hongyuan data, assets tied to Korea’s single-stock 2x leveraged ETFs expanded quickly after the products launched on May 27, then shrank sharply during the tech pullback, with product scale down 71.6% from its peak. Korea’s margin financing balance has also dropped to about 27 trillion won, back to levels seen at the start of 2026. South Korean regulators have since raised the investment threshold for leveraged ETFs.

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Korea Exchang

2026-08-07 05:53:01

Korea Exchange to launch after-hours ETF trading on Sept. 14

Korea Exchange will begin after-hours trading for exchange-traded funds on Sept. 14, with the session set to run from 4:00 p.m. to 8:00 p.m. The rollout will go ahead even as parts of the industry remain concerned about recent volatility in leveraged products. The exchange said single-stock leveraged ETFs will be excluded from the eligible instruments during the after-hours session. The move is aimed at competing with alternative trading system Nextrade and round-the-clock crypto exchanges. Before the launch decision, industry participants had called on Korea Exchange to delay the service.

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JPMorgan

2026-08-07 04:58:37

JPMorgan: Tech Stocks Will Lean More on Retail Capital if Hedge Fund Buying Recedes

JPMorgan strategists led by Nikolaos Panigirtzoglou warned in an Aug. 7 report that the buying structure for technology stocks could become more fragile. If hedge fund demand fades, tech equities will increasingly rely on retail investors, leveraged ETFs, options trading and margin accounts. Such flows can amplify gains during rallies but add to drawdown pressure when volatility spikes. The note also said prime brokers may impose tighter limits on high-volatility tech positions, slowing the pace at which institutions can rebuild leverage.

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retail invest

2026-08-07 00:46:15

US Retail Investors Sold $7B in Tech Stocks Last Week, Phyrex Says

According to crypto KOL Phyrex, who shared the data in a post on X, US retail investors have shifted their trading direction. Last week, they were net sellers of stocks for four consecutive trading days, marking the longest net-selling streak this year. Tech stocks saw the heaviest selling, with weekly net sales of approximately $7 billion. Two of the three largest single-day sell-offs of tech stocks by retail investors on record also occurred last week. The sell-off was centered in semiconductor and memory chip stocks — areas that had seen concentrated retail buying in May and June. Alongside the equity moves, US tech-focused leveraged ETFs have seen their assets shrink by about $50 billion from the June peak. Leveraged ETF products tied to South Korea and Taiwan have fallen more than half from peak levels. SOXL, the 3x semiconductor ETF, is down roughly 67% from its high, while trading volume in the 2x Hynix ETF has dropped more than 90% from its peak.

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South Korea s

2026-08-03 11:25:44

Foreign Investors Return to South Korean Stocks as Deleveraging Pressure Nears an End

Foreign investors are starting to buy back into South Korean equities after a sharp July sell-off, with some institutions saying the liquidation driven by leverage may be close to running its course. On Friday, overseas investors bought about KRW 7.2 trillion, or roughly $5 billion, in Korean stocks, setting a record for the largest single-day net purchase. The move marked a break from the sustained net selling trend seen earlier this year. JPMorgan data showed that assets in leveraged ETFs tied to Samsung Electronics and SK Hynix fell from about $50 billion in late June to around $17 billion last week. Analysts said much of the earlier decline was tied to forced liquidation and hedge fund deleveraging rather than a deterioration in corporate fundamentals. JPMorgan’s team estimated that deleveraging by Korean hedge funds is about 90% complete, while average short interest in the market has dropped from a recent peak of 5.3% to 4.3%. Still, volatility remains elevated. The KOSPI surged a record 17.9% on Friday, then fell nearly 5% on Monday. South Korea’s government has also faced criticism over losses linked to single-stock leveraged ETFs and has started restricting high-leverage products.

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KOSPI

2026-08-03 02:19:17

Bloomberg data shows KOSPI volatility has outpaced Bitcoin this year

Bloomberg data shows South Korea’s benchmark KOSPI has posted a 63% return volatility so far this year, higher than Bitcoin’s 48% over the same period. That makes the KOSPI the most volatile market among the major national equity indexes tracked by Bloomberg. The report ties the sharp swings to the structure of the Korean market itself. Samsung Electronics and SK Hynix together account for more than half of the KOSPI’s weighting, leaving the index heavily exposed to the semiconductor sector. Retail-driven leverage has added to the instability. Leveraged ETFs linked to the two chip stocks at one point made up more than 70% of daily trading turnover in the Korean stock market. Bloomberg’s figures also show Korean retail investors have bought more than 110 trillion won, or about $77 billion, worth of KOSPI stocks this year. Their pattern of chasing rallies and selling into declines has added to the turbulence, turning the market increasingly into a high-leverage trading venue centered on Samsung Electronics and SK Hynix.

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South Korea

2026-08-02 10:16:05

South Korea Weighs Emergency Market Powers to Cap Leverage ETF Exposure During Extreme Volatility

South Korea’s financial regulators are pushing to revise the Capital Markets Act to give authorities emergency intervention powers during periods of sharp stock-market swings. The proposal would let regulators move more quickly on single-stock leveraged exchange-traded funds, which officials see as products that can amplify volatility during market sell-offs. Measures under discussion include temporarily cutting leverage ratios, imposing per-investor limits, and capping investment concentration at around 20%. The move is being reviewed by the Financial Services Commission and the Financial Supervisory Service, with regulators citing the limits of the current framework. Under existing rules, changes tied to a fund’s return structure may require approval from a meeting of fund holders, a process authorities say is too slow for extreme market conditions. Officials are also considering a real-trading simulation system to improve investor understanding of leveraged product risks. South Korea had already tightened access to these products on July 31 by raising the minimum margin requirement for investors in single-stock leveraged ETFs from 10 million won to 30 million won. On the first day of the new rule, turnover in 16 related leveraged ETFs fell to about 3 trillion won, down from 12.4 trillion won in the previous session and roughly 80% below the 15 trillion won recorded on July 29.

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