A South Korean funeral services company reported an unrealized loss of approximately 45 billion won ($33 million) related to investments in ether (ETH) leveraged exchange-traded funds (ETFs).
Seoul-based Bumo Sarang, meaning Parental Love in Korean, has 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 provide 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 riskiest exchange-traded products available to retail investors.
The company’s losses are unrealized, meaning the stakes have not yet been sold. Nonetheless, the disclosure highlights South Korea’s growing appetite for crypto-related speculative investment products, particularly leveraged ETFs linked to digital asset companies and associated stocks.
South Korea has become one of the world’s most active markets for trading leveraged and inverse ETFs, with regulators warning investors of the volatility and risks associated with exposure-magnified products.
The losses also reflect recent sharp swings in crypto-related stocks as digital asset markets remain highly volatile.
