SK Hynix’s US-listed American Depositary Receipts (ADRs) trade at a 23.4% premium to its Korean shares, as two large whales work to converge the $14 million expected price gap.
Per Hyperinsight monitoring, as of press time, the SK Hynix (SKHX) contract on Hyperliquid trades at $1,245.4, with a 24-hour trading volume of ~$1.021 billion. The US ADR contract SKHY is priced at $153.69, with a 24-hour volume of ~$136 million.
Based on the conversion ratio of 10 ADRs equaling 1 South Korean common share, SKHY’s equivalent price stands at $1,536.9, a $291.5 premium over SKHYNIX. This translates to a ~23.41% premium for the US ADR versus the South Korean stock, and a ~18.97% discount for the South Korean stock relative to the US ADR.
On funding rates: SKHYNIX has an hourly rate of +0.06132%, with longs paying shorts. SKHY’s hourly rate is -0.00463%, with shorts paying longs, marking a 0.06595 percentage point gap between the two. This means a convergence trade position of "long SKHYNIX, short SKHY" would require paying high funding fees on both sides. Conversely, a reverse position would collect funding fees on both sides but bets on the US ADR premium continuing to widen.
Still, two notable convergence trades exist among visible large addresses:
- Address starting with 0x257: Longs 2,500.42 SKHX with 10x leverage, worth ~$3.115 million; simultaneously shorts 31,031.66 SKHY with 10x leverage, worth ~$4.776 million. Total position size is ~$7.891 million, with an unrealized profit of ~$339,000, the largest visible convergence trade.
- Address starting with 0xf517: Longs 2,145.256 SKHX with 10x leverage, and shorts 22,223.39 SKHY with 5x leverage, with a quantity ratio of ~1:10.36, closest to the 1:10 ADR conversion ratio. Total position size is ~$6.093 million, with an unrealized loss of ~$389,000.
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