Global Market: How leveraged ETFs are amplifying the AI chip trading frenzy

Leveraged ETFs tied to AI chipmakers Samsung Electronics and SK Hynix are amplifying volatility across Asian markets, with the KOSPI Volatility Index hitting a record 97.99 in June 2025. Assets in the SK Hynix-linked leveraged ETF have grown roughly twentyfold since the start of the year, with Samsung and SK Hynix accounting for over 80% of KOSPI trading volume on certain days. South Korea's Financial Services Commission has announced new measures to curb risks, including banning promotional campaigns and discouraging new product launches.