A South Korean funeral services company reported an unrealized loss of around 45 billion won ($33 million) linked to investments in leveraged ether (ETH) exchange-traded funds (ETFs).
Bumo Sarang, Korean for Seoul-based Parental Love, invested in the T-REX 2X Long BMNR Daily Target ETF (BMNU), a leveraged exchange-traded fund managed by Tuttle Capital Management that seeks to deliver 200% of the daily performance of Bitmine Immersion Technologies (BMNR), the world’s largest publicly traded ether holder.
Leveraged ETFs are designed for short-term trading and can magnify both gains and losses, making them one of the highest-risk exchange-traded products available to retail investors.
The company’s losses have not been realized, that is, the shares have not yet been sold. Still, the disclosure underscores the growing appetite in South Korea for speculative investment products linked to cryptocurrencies, particularly leveraged ETFs linked to digital asset companies and related stocks.
South Korea has become one of the world’s most active markets for trading in leveraged and inverse ETFs, with regulators warning investors about the volatility and risks associated with amplified exposure products.
The losses also reflect the recent sharp swings in cryptocurrency-related stocks, as digital asset markets remain highly volatile.
