South Korean Investors Flock to Leveraged Crypto ETFs Amid Market Rebound

South Korean investors have been increasing their holdings of leveraged exchange-traded funds (ETFs) tied to Bitcoin and Ethereum, according to a report by Maeil Business Newspaper.

The report highlights that 2x leveraged ETFs backed by the two largest cryptocurrencies ranked among the top net-buying picks for local investors in overseas stocks. The notable names include ETHU, BITX, and BITU.

Market context shows that the broader cryptocurrency market is rebounding after recent volatility. Over the past week, ETHU, a 2x leveraged Ethereum ETF, rose by 62.4%, while BITX and BITU, both 2x leveraged Bitcoin ETFs, each gained more than 47%.

South Korean retail investors have long been active in overseas markets, particularly in high-risk assets. The Korea Securities Depository data reflects a growing appetite for crypto-related financial products, even as domestic regulators maintain strict restrictions on direct cryptocurrency ETFs.