The frenzy of leveraged ETFs in South Korea suddenly stalled, and the trading volume of the Hynix 2x ETF plummeted by more than 90% The enthusiasm of Korean retail investors for single stock leveraged ETFs may have entered a rapid decline from crazy bottom fishing. One of the largest single stock leveraged products in South Korea, the Kodex SK Hynix 2x ETF, had only about 59 million trading volumes left on Monday, returning to the lowest level since June 4th. Prior to the implementation of the new regulations, the daily trading volume of this ETF was close to 650 million units. In just a few trading days, the trading volume dropped by over 90% from its peak, and the most active group of leveraged funds in the early stage almost suddenly disappeared. Not only has the trading volume decreased, but the price of ETFs has also fallen by about 79% from their mid June peak, and more than 65% from the price when they went public in May. Many Korean retail investors who caught up later not only did not wait for a rebound, but also suffered greater losses in the process of constantly replenishing their positions and increasing leverage. Starting from July 31st, South Korean regulatory authorities have raised the minimum cash deposit required to trade such products from KRW 10 million to KRW 30 million, equivalent to approximately USD 21000, and temporarily suspended the approval of new single stock leveraged ETFs. This regulation directly raises the threshold for individual investors to participate. Previously, only about $7000 was needed to trade products from Samsung Electronics or SK Hynix that were twice as long. Now that the threshold has tripled, a large number of small accounts have lost their eligibility to continue trading, and new funds will naturally decrease rapidly. Regulation is just starting to strengthen after the sheep are lost, but the real pain point is that the funds in the hands of individual investors have become increasingly scarce. The financing balance in South Korea has dropped to 28.9 trillion Korean won, equivalent to about 20.3 billion US dollars, the lowest level since January this year. In the early stage, Korean retail investors used their financing accounts while buying single stock leveraged ETFs. After the two sets of leverage were combined, the gains were amplified when the market rose, and the losses, claims, and forced liquidation were also amplified when the market fell. At present, KOSPI is still down about 32% from its high point, and the most severe pullback reached 42% at one point. Over the past few months, retail investors who have been taking over Samsung Electronics and SK Hynix are now facing huge floating losses and higher trading thresholds, and the funds that can continue to invest in the market are rapidly decreasing. The previous surge in trading volume represented a large amount of funds buying at the bottom, changing hands, stopping losses, and being forced to close positions. The sudden drop in trading volume to one tenth of its original level indicates a significant decrease in the number of people willing to continue entering the market. Without new retail funds taking over, even if short-term selling weakens, the market has lost its previous most important marginal buyer. The South Korean single stock leveraged ETF was launched at the end of May and had its threshold raised by the end of July. In just over two months, it completed the entire process from crazily chasing after gains and buying more and more funds as it fell. @Gate Crypto、 US stocks, Hong Kong stocks, South Korean stocks, gold CFD、 Predicting one-stop trading in the market