The Roundhill Memory ETF (DRAM) plummeted 5.04% in intraday trading on Monday, as a broad sell-off in global memory chip stocks weighed heavily on the fund's underlying holdings.

The decline was driven by significant drops in major memory chip manufacturers, including Samsung Electronics and SK Hynix, which are top holdings of the ETF. The sell-off has been attributed to a wave of deleveraging in the South Korean memory sector, where leveraged structures among retail investors amplified downward pressure. Additionally, the market is reassessing the sustainability of the extended price rally in memory chips, as concerns mount over high profit margins and the potential for supply increases to moderate future price gains.

The DRAM ETF, which tracks a basket of global memory chip leaders, saw its value erode as the memory sector faced a structural risk release. The pressure on key holdings like Samsung and SK Hynix, which together account for nearly half of the fund's portfolio, directly translated into the ETF's sharp decline.