SK hynix Stock Trades 24/7: Impact on the Domestic Stock Market [Weekend Money]

Trading Value of Linked Token Products
76.5% of Underlying Shares... "Limited Impact"
Nighttime and Weekend Price Discovery Reflects Advance Information

It has been found that the 24-hour trading volume of SK hynix-linked token products is nearly 80% of the company’s underlying stock trading value. While the impact on the domestic stock market’s supply and demand is currently limited, it appears that this influence may grow as the token market expands.

According to CoinGlass, a virtual asset derivative product data analytics firm, as of July 27, SK hynix-linked token products ranked among the top 20 globally in terms of 24-hour stock token trading volumes, with three of these products making the list. The combined trading amount reached approximately 5.47 trillion won. SKHYNIX ranked first with a trading value of 2.77 billion US dollars; SKHY was sixth (538 million dollars), and SKHX placed seventh (413 million dollars). This figure amounts to 76.5% of the domestic SK hynix underlying stock trading value, which stood at 7.15 trillion won.

However, experts have stated that such large-scale trading does not directly translate into new funds being used to purchase SK hynix shares. Researcher Yang Hyunkyung from iM Securities commented, "It is difficult to compare virtual asset markets and spot markets by simply applying the same measurement standards." In particular, the reported trading volume of virtual asset derivatives is a notional value reflecting leverage, with repeated trades of the same funds, arbitrage between products, and market makers' two-sided trades all accumulating in the total. Another distinction is that the virtual asset market operates 24 hours a day, whereas the domestic spot market is focused on regular trading hours only.

The impact of stock token products on the supply and demand of SK hynix underlying shares varies depending on the product structure. In the case of one-to-one collateralized tokenized securities, the depository institution holds the actual shares or American Depository Receipts (ADRs) corresponding to the issued tokens. To assess the influence of these products on supply and demand, one must examine the net issuance and net redemption of tokens, as well as the scale of collateralized assets, rather than focusing solely on trading volume. In contrast, perpetual futures products are derivative contracts that settle the price differential without delivering the underlying stock itself. Issuers do not need to purchase Korean stocks directly, but underlying share supply and demand can be indirectly affected via market makers’ hedging trades or arbitrageurs seeking discrepancies between spot and futures prices.

Currently, the token market's main influence on the domestic stock market is to function as a nighttime leading indicator. Even overnight or on weekends, when the domestic stock market is closed, the token market trades around the clock. During this time, movements in U.S. semiconductor stocks, the memory industry outlook, exchange rates, and news are all reflected in token prices in real time. In fact, according to Tiger Research’s analysis of the relationship between token prices and the next day’s SK hynix opening price, when SK hynix perpetual futures prices rose after market close, the underlying stock opened higher the next trading day in 95% of cases. Conversely, when futures prices fell, the underlying stock opened lower 78% of the time.

Of the 36.9 billion dollar global RWA (real-world asset tokenization) market, stock tokenization stands at 1.86 billion dollars, meaning the sector remains in its early stages; as such, the market is not yet large enough to dramatically disrupt underlying share supply and demand. Nevertheless, experts have warned that if the market grows, risks of shock transmission and other changes may emerge. Researcher Yang noted that as the net issuance of one-to-one collateralized tokens increases, the issuing companies and depositories will purchase more of the underlying stock, thereby amplifying direct supply and demand effects. Furthermore, if open interest increases in the perpetual futures market and institutional and professional market makers participate more, indirect underlying stock trading through delta hedging and spot-futures arbitrage may also grow. He added, "If token market liquidity expands sufficiently, the prices formed after the domestic market closes could go beyond serving as a simple opening price reference and start influencing the price formation process in the domestic spot market itself." He continued, "Sharp price drops and large-scale liquidations in the token market could potentially lead to steep declines in opening prices and greater volatility at the start of trading on the following day in the domestic market."

This content was produced with the assistance of AI translation services.