South Korean Investors Flock to Leveraged Crypto ETFs Amid Market Rebound

South Korean investors have shown significant interest in leveraged exchange-traded funds (ETFs) tied to Bitcoin and Ethereum, according to a report by Maeil Business Newspaper. The data from the Korea Securities Depository reveals that these investors have sharply increased their net purchases of 2x leveraged ETFs backed by the two largest cryptocurrencies.

The notable names among these products include ETHU, BITX, and BITU, all of which are 2x leveraged ETFs. These funds amplify daily returns, making them popular among traders seeking higher exposure during strong market moves.

As the broader cryptocurrency market recovers from recent volatility, South Korean retail investors have turned to overseas markets for access to these products. The report highlights that ETHU, a 2x leveraged Ethereum ETF, rose 62.4% over the past week, while BITX and BITU each gained more than 47%. However, financial advisors caution that leveraged ETFs carry inherent risks, including volatility decay and amplified losses.