Direxion filed with the U.S. Securities and Exchange Commission to launch the Direxion Daily SK Hynix Bull 2X ETF (SKHL), aiming to provide 200% of the daily performance of SK Hynix Inc ADR. The proposed ETF targets growing investor enthusiasm for AI memory stocks and is expected to begin trading shortly after SK Hynix's ADR debuts on July 10, subject to regulatory approval. SK Hynix is the global leader in high-bandwidth memory (HBM) chips and a major supplier to Nvidia, including next-generation HBM4 memory for the Vera Rubin platform.

The fund's investment objective is to deliver 200% of the daily performance, before fees and expenses, of the SK Hynix ADR. The launch timeline aligns with the ADR listing, which experts anticipate will be one of the largest offerings ever. SK Hynix is expected to raise up to $29.4 billion through its U.S. IPO, potentially surpassing Alibaba's $21.8 billion record set in 2014.

Key Features of the Proposed ETF

SKHL will expand Direxion's existing lineup of leveraged and inverse semiconductor ETFs, which includes the Direxion Daily Semiconductor Bull 3X ETF (SOXL), Direxion Daily Semiconductor Bear 3X ETF (SOXS), Direxion Daily NVDA Bull 2X ETF (NVDU), Direxion Daily NVDA Bear 1X ETF (NVDD), Direxion Daily MU Bull 2X ETF (MUU), and Direxion Daily MU Bear 1X ETF (MUD).

Competitive Landscape

The filing intensifies competition among ETF issuers offering products linked to SK Hynix ahead of its U.S. market debut. Leverage Shares by Themes previously 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 both bullish and bearish leveraged exposure.

"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."

SK Hynix Inc. has filed a prospectus to sell 177,900,000 American Depositary Shares (ADSs) on the Nasdaq Global Select Market, aiming to provide U.S. investors with direct access to the South Korean memory chip manufacturer. Each ADS represents one-tenth of a common share, with the stock set to trade under the symbol "SKHY." The company plans to determine the initial public offering price through negotiations with underwriters, based on the last reported trading price of its common shares on the Korea Exchange (KRX) KOSPI Market and prevailing market conditions. On July 3, 2026, the last reported sales price of SK Hynix's common shares was W2,425,000 per share, equivalent to approximately $158.14 per ADS.

The offering is expected to raise significant capital, with cornerstone investors indicating an interest in purchasing up to an aggregate of $7 billion of the ADSs. Baillie Gifford Overseas Limited, Coatue Management, L.L.C., and Situational Awareness Partners LP have expressed non-binding interest in buying shares at the initial public offering price. The underwriters will receive the same discount on any ADSs purchased by these cornerstone investors as they will from other public sales. Prior to this offering, there has been no public market for SK Hynix's ADSs.

Market Context and Valuation

SK Hynix's common shares are listed on the KRX KOSPI Market under the identification code "000660." The company's valuation reflects its dominant position in the high-bandwidth memory (HBM) chip market, which is critical for artificial intelligence applications. The filing notes that the offering price will be subject to certain restrictions under Korean law if determined at a discount from the trading price on the KRX KOSPI Market. The exchange rate used for valuation calculations was W1,533.44 per US$1.00, as quoted by the Federal Reserve Bank of New York on June 26, 2026.

Cornerstone Investors and Underwriting

The cornerstone investors' interest highlights strong demand for SK Hynix's shares, though their indications are not binding commitments. The underwriters, whose names are detailed in the prospectus, will manage the distribution of the ADSs. The filing emphasizes that the cornerstone investors may purchase more, fewer, or no ADSs in the offering, depending on final terms and conditions. This structure provides flexibility while signaling confidence from major institutional players.