Direxion is looking to capitalize on growing investor enthusiasm around AI memory stocks by filing with the U.S. Securities and Exchange Commission to launch the Direxion Daily SK Hynix Bull 2X ETF (SKHL).
The proposed ETF would seek daily investment results, before fees and expenses, equal to 200% of the daily performance of the SK Hynix Inc (NASDAQ:SKHY).
The ETF is expected to begin trading shortly after SK Hynix’s ADR debuts on July 10, subject to regulatory approval.
Key Features Of The Proposed Direxion ETF
- Investment objective: Seeks 200% of the daily performance, before fees and expenses, of the SK Hynix ADR
- Launch timeline: Expected to begin trading shortly after SK Hynix’s ADR lists
- Underlying catalyst: SK Hynix’s ADR is scheduled to debut on Friday, in what experts expect to be one of the largest ADR offerings ever
- AI exposure: SK hynix is the global leader in HBM chips and a major supplier to Nvidia, including next-generation HBM4 memory for the Vera Rubin platform
Semiconductor Lineup
SKHL would join Direxion’s existing leveraged and inverse semiconductor ETFs, including Direxion Daily Semiconductor Bull 3X ETF (NYSE:SOXL), Direxion Daily Semiconductor Bear 3X ETF (NYSE:SOXS), Direxion Daily NVDA Bull 2X ETF (NASDAQ:NVDU), Direxion Daily NVDA Bear 1X ETF (NASDAQ:NVDD), Direxion Daily MU Bull 2X ETF (NASDAQ:MUU), and Direxion Daily MU Bear 1X ETF (NASDAQ:MUD)
“SK hynix sits at the center of the AI memory story, and few listings this year have been more anticipated,” said Mo Sparks, Direxion’s chief product officer. “SKHL will provide active traders a focused way to act on that conviction once the ADR is trading, and it is a natural extension of the semiconductor franchise we have built.”
The filing adds to the growing competition among ETF issuers seeking to offer products linked to SK Hynix ahead of its highly anticipated U.S. market debut. Earlier, Leverage Shares by Themes announced plans to launch the Leverage Shares 2x Long SK Hynix Daily ETF (SKHX) and the Leverage Shares 1x Short SK Hynix Daily ETF (SKHZ) on July 13, providing investors with both bullish and bearish leveraged exposure to the South Korean memory-chip giant.
SK Hynix is expected to raise up to $29.4 billion through its U.S. IPO, potentially making it the largest ADR offering in history, surpassing Alibaba’s $21.8 billion record set in 2014. The company has emerged as the world’s leading supplier of high-bandwidth memory (HBM) chips used alongside AI accelerators and is a key supplier to Nvidia, including qualification of its next-generation HBM4 memory for Nvidia’s upcoming Vera Rubin AI platform.
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