South Korean funeral company reveals $33 million loss on leveraged ether ETF bet

South Korean funeral company reveals $33 million loss on leveraged ether ETF betMarkets

What to know:

  • A South Korean funeral company disclosed a roughly $33 million unrealized loss tied to a leveraged crypto-related ETF.
  • The firm invested in the T-REX 2X Long BMNR Daily Target ETF (BMNU), which targets 200% of BitMine Immersion Technologies’ daily performance.
  • The disclosure highlights rising appetite among South Korean investors for high-risk leveraged trading products.

A South Korean funeral home company lost approximately $33 million due to investments in risky ether (ETH) ETFs. The loss hasn’t been officially realized yet, but represents the current value of their investments.

Bumo Sarang, a Seoul-based investment firm whose name means ‘Parental Love,’ recently invested in the T-REX 2X Long BMNR Daily Target ETF (BMNU). This fund, managed by Tuttle Capital Management, aims to provide twice the daily returns of Bitmine Immersion Technologies (BMNR), which is the biggest publicly traded company holding ether.

Leveraged ETFs are built for short-term trades and can dramatically increase both profits and losses. Because of this, they’re considered very risky investments for everyday investors.

The company hasn’t actually lost this money yet, as the investments haven’t been sold. However, this situation highlights the increasing interest in South Korea for risky investments connected to cryptocurrency, especially leveraged ETFs that track crypto companies and their stocks.

South Korea is now a major hub for trading leveraged and inverse ETFs. However, regulators are cautioning investors that these products can be very volatile and carry significant risks due to their amplified returns.

These losses are also happening because the prices of companies involved with cryptocurrency have been changing dramatically, mirroring the instability currently seen in the digital currency market.

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2026-05-20 17:49