The hottest ETF since bitcoin-mania just added $1 billion in a day
Roundhill Investment’s Memory ETF (DRAM) tracking the red-hot memory sector has raised more than $5 billion since its April 2 launch, including $1.1 billion on Thursday alone. It started out of the gates red hot, garnering $1 billion its first 10 days of trading, a milestone that trails only the substantial bitcoin ETFs rollout three years go and the debuts of iShare’s popular ‘LQD’ bond fund, the staple GLD gold ETF from SPDR, and JP Morgan’s BBCA Canadian equity fund, according to Goldman.
“Memory has been identified as the clear AI bottleneck and there’s a shortage of these chips that’s going to last not for a quarter but multiple years,” Roundhill CEO Dave Mazza remarked on the phone. Furthermore, experts in portfolio note the continued relevance.
DRAM’s seen inflows every single day since launch, a 23-session streak that’s happening alongside a 70% rally in the price of the ETF as top holdings like Micron and Sandisk set records on a daily basis. This also touches on aspects of investors.
Substantial call buying
Options traders eager for latest ways to trade the AI boom are storming into Cboe-listed DRAM, with over 90,000 contracts traded Thursday and almost twice as many calls bought than puts. The fund is already in the top 40 of all U.S.-listed ETFs by options volume.
Another reason for the fund’s popularity: it includes Korea’s star chip stocks SK Hynix and Samsung Electronics.
“These are two of the biggest memory companies and they’re essentially inaccessible for U.S. investors,” stated Mazza. “If you acquire a South Korea ETF, you’re gonna get other stuff you don’t want. And if you acquire a semiconductor ETF, the weight of companies like Micron is too small.”
AI Disclosure:
This article has been generated and curated using advanced AI technology. While we strive for absolute accuracy, some details may be summarized or translated by autonomous systems. Please cross-reference critical financial data with official sources.
More from this Category
