The hottest ETF since bitcoin-mania just added $1 billion in a day
The fastest-growing ETF in years is the latest AI play to take to the skies in more ways than one.
Roundhill Investment’s Memory ETF (DRAM) The hot memory industry tracker has raised more than $5 billion since its April 2 launch, including $1.1 billion on Thursday alone. According to Goldman, it started off hot out of the gates, raising $1 billion in its first 10 days of trading; It’s a milestone that follows the launch of major bitcoin ETFs just three years ago, as well as the launch of iShare’s popular ‘LQD’ bond fund, SPDR’s core GLD gold ETF and JP Morgan’s BBCA Canadian equity fund.
“Memory has been identified as the AI bottleneck, and there is a shortage of these chips that will last several years, not a quarter,” Roundhill CEO Dave Mazza said on the phone.
Roundhill Memory ETF
DRAM has seen daily penetration since launch; Along with a 23-session streak, there is a 70% increase in the ETF price. Micron And sandisk Break records on a daily basis.
Big call buy
Options traders looking for new ways to trade the AI boom are flocking to Cboe-listed DRAM, with more than 90,000 contracts traded on Thursday, with nearly twice as many calls as sales. The fund currently ranks in the top 40 of all U.S.-listed ETFs by options volume.
Another reason for the fund’s popularity is that it includes Korea’s star chip stocks SK Hynix and Samsung Electronics.
“These are two of the largest memory companies, and they are essentially out of reach for U.S. investors,” Mazza said. “If you buy a South Korea ETF, you buy other things you don’t want. If you buy a semiconductor ETF, the weighting of companies like Micron is very small.”
