Crude Oil ETP Market Capitalization Surges Amid Volatility

The market capitalization of domestic crude oil exchange-traded products (ETP) has surged by nearly 47% from the end of last year to KRW 2.682 trillion, according to the Financial Supervisory Service on the 22nd.

This increase is largely driven by the volatility in crude oil prices due to recent international disputes, with West Texas Intermediate (WTI) futures jumping 97% from $57.3 a barrel on January 2 to $113 on April 7 before falling 39% to $68.6 on July 6.

More than 88% of the market capitalization of crude oil ETP consists of leveraged and inverse products, which requires investors' attention due to their amplified profits and losses.