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The race to launch ETFs tied to SK Hynix Inc is about more than one of the largest ADR listings in history—it's a bet that investors are beginning to look beyond AI chipmakers like Nvidia and toward the memory companies powering the next generation of artificial intelligence infrastructure.
Direxion on Wednesday launched the Direxion Daily SK Hynix Bull 2X ETF, offering investors 2x the daily performance of SK Hynix's U.S.-listed shares.
The launch comes just days after the South Korean memory-chip giant's blockbuster Nasdaq debut, which is expected to raise up to $29.4 billion, eclipsing Alibaba's record $21.8 billion ADR offering. It also intensifies competition in the category, following Leverage Shares' launches of the 2x Long SK Hynix Daily ETF and 1x Short SK Hynix Daily ETF (CBOE: SKHZ).
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In an interview with Benzinga, Jake Behan, Direxion's head of Capital Markets, said the firm's new leveraged ETF reflects growing trader interest in AI memory, describing SK Hynix as a company at the intersection of semiconductors, AI infrastructure and surging memory-chip demand.
Direxion believes the investment case extends well beyond the IPO itself. Behan said SK Hynix has become one of the market's most closely watched AI infrastructure companies because of its dominant position in high-bandwidth memory (HBM), a critical component paired with AI accelerators.
"SK Hynix sits at the intersection of several important themes being watched closely by traders, including semiconductors, the AI infrastructure buildout and memory chip demand. The company's proximity to the memory ecosystem, particularly as demand for those products has exploded, has drawn significant interest from the trading community."
The comments underscore a broader shift in the AI investment narrative. While NVIDIA Corp has dominated investor attention over the past two years, companies supplying the memory needed to power increasingly complex AI workloads are attracting greater interest.
SK Hynix is the world's leading supplier of HBM chips and a key memory partner to Nvidia, including the qualification of its next-generation HBM4 products for Nvidia's upcoming Vera Rubin platform.
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