In South Korea, some investors are actively betting on a new trading opportunity—leveraged VIX investments—to hedge their substantial holdings in US stocks or to seek new speculation avenues.

Since the beginning of this year, a 2x long VIX futures ETF has attracted approximately $130 million in inflows. This fund aims to achieve double the returns of the CBOE Volatility Index (VIX) futures. According to data from the Korea Securities Depository, it has become one of the most popular US stock ETFs among Korean investors, ranking seventh in purchase volume in July. The new inflows account for about one-fifth of the global inflows into this ETF.

Against a backdrop of years spent investing in large tech stocks and cryptocurrencies—often through leveraged tools—many South Korean investors are now preparing for a potential market sell-off. As valuations of the US stock market approach historical highs, discussions around "bubbles" are intensifying on social media.