Corgi Strategies, GraniteShares Advisors, and Tuttle Capital Management are seeking regulatory approval for leveraged ETFs tracking Kioxia. Asset managers have planned at least nine ETFs to track the company. These funds will offer double the daily return or inverse return of Kioxia shares. This marks the first time a Japanese company will have single-stock leveraged ETFs in the U.S.
The move could increase trading volatility for the semiconductor firm. Kioxia recently saw its market capitalization halved after briefly becoming Japan’s most valuable company. These products aim to provide U.S. investors with direct exposure to high-interest Japanese equities.
Kioxia Holdings recorded a net inflow of JPY 14.24 billion on the Tokyo Stock Exchange on July 27th.