The race to capitalize on the artificial intelligence memory boom has reached the ETF market, with three issuers launching the first wave of leveraged funds tied to SK Hynix Inc’s recently listed U.S. ADR. REX Shares and Tuttle Capital Management, ProShares, and GraniteShares have all rolled out products offering amplified exposure to the world’s second-largest memory chipmaker, giving U.S. investors new ways to trade one of AI’s most important hardware suppliers following its record-breaking U.S. listing.

The launches come just days after SK Hynix’s roughly $28 billion ADR offering, the largest ADR listing in U.S. history, debuted. The company has emerged as one of the biggest beneficiaries of the AI infrastructure buildout as the leading supplier of high-bandwidth memory (HBM) used alongside Nvidia Corp’s GPUs in AI servers. With demand for advanced memory chips accelerating, ETF issuers are rapidly expanding beyond Nvidia- and AI-chip-focused products to offer targeted exposure to the memory segment of the semiconductor supply chain.

New Leveraged SK Hynix ETFs

The new funds provide traders with tools to express bullish or bearish views on the stock:

• T-REX 2X Long SKHY Daily Target ETF (NYSE: HYNX) from REX Shares and Tuttle Capital seeks 200% of the daily performance of SK Hynix, before fees and expenses. This expands the T-REX lineup to more than 40 leveraged and inverse single-stock ETFs.
• ProShares Ultra SK Hynix (NYSE: SKHU) offers leveraged exposure to the company's ADRs.
• GraniteShares 2x Long SK Hynix Daily ETF (NASDAQ: SKUU) seeks 2x the daily performance of SK Hynix ADRs.
• GraniteShares 2x Short SK Hynix Daily ETF (NASDAQ: SKDD) seeks -2x (inverse) the daily performance of SK Hynix ADRs, allowing traders to express bearish views without using margin or options.

The trio of launches underscores how quickly ETF issuers are responding to investor demand for tactical AI exposure beyond GPUs. While Nvidia-related leveraged ETFs have dominated trading volumes over the past year, the arrival of multiple SK Hynix products signals growing confidence that AI memory has become its own investable theme. Like all leveraged ETFs, the funds are designed to achieve their stated objectives on a daily basis and are intended primarily for short-term trading rather than long-term buy-and-hold investing.

Key Details of the SK Hynix ETFs

SK Hynix shares were up 23.84% at $188.66 at the time of publication on Tuesday. These products add to the proliferating landscape of single-stock ETFs, allowing traders to take amplified bullish or bearish positions on one of the AI sector's most critical components. The funds are distributed by ALPS Distributors, Inc., which is not affiliated with GraniteShares.

Bain Capital has officially exited Kioxia Holdings Corp., realizing a significant gain after the memory chipmaker's stock surged more than 4,000% since its December 2024 IPO. While the private equity firm has completely divested its position, SK Hynix Inc. continues to hold a roughly 14% stake in the Japanese company. This retention offers investors exposure to the growing demand for NAND flash memory used in artificial intelligence infrastructure, a segment often overshadowed by high-bandwidth memory (HBM).

Bain Capital's Exit

Bain confirmed the complete divestment of its Kioxia stake this week. The firm had been gradually selling shares following the company's public listing. The exit marks the conclusion of an investment that began in 2018 when Bain led the $18 billion acquisition of Toshiba Memory, which was later rebranded as Kioxia. The post-IPO rally transformed the business into one of Japan's top stock market performers.

SK Hynix's Continued Investment

A special-purpose investment vehicle established for SK Hynix maintains ownership of approximately 14% of Kioxia. Market participants primarily value SK Hynix for its dominance in HBM, the premium chips utilized in Nvidia Corp's AI accelerators. However, the Kioxia holding provides a secondary avenue for participation in the AI hardware stack, specifically in enterprise storage solutions.

Expanding AI Memory Demand

The focus on AI investing has historically centered on graphics processing units (GPUs) and HBM. Demand for enterprise NAND flash memory is now increasing as companies deploy larger AI models and inference workloads. Kioxia is reportedly preparing for the mass production of next-generation flash memory designed specifically for AI applications. This development highlights the broadening scope of the memory boom beyond HBM.

Strategic Positioning

SK Hynix's strategy encompasses both the sale of HBM chips for current AI servers and an equity stake in a major beneficiary of AI-driven NAND demand. While the company is recognized for its leadership in HBM and DRAM, the Kioxia investment represents a distinct asset within its portfolio. Should the demand for AI storage accelerate, this ownership position may gain greater significance in the company's overall investment narrative.