U.S. asset managers are seeking to launch the first single-stock leveraged exchange-traded funds tied to a Japanese chipmaker, modeled after instruments on Samsung Electronics and SK hynix, as the chip-linked leveraged ETF frenzy from South Korea is poised to spill over to Japan. According to Bloomberg, U.S. firms including Kogi Strategies, GraniteShares and Turtle Capital have filed to list leveraged and inverse ETFs tracking Kioxia shares and its American depositary receipts, with at least nine products currently under review by U.S. regulators. Supporters expect strong demand as investors continue to pour into AI-related stocks, while critics warn they could amplify volatility. Andrew Jackson, head of Japanese equity strategy at Ortus Advisors, told Bloomberg that "the experience in South Korea shows that leveraged ETFs distort normal market mechanisms and significantly increase volatility." Bloomberg noted that rapid growth in leveraged ETFs tied to Samsung Electronics and SK hynix in South Korea prompted regulators to suspend approvals for new single-stock leveraged ETFs. Kioxia shares have fallen about 42 percent over the past month to 51,350 yen on Monday and are down about 3.3 percent over the past five trading days. U.S. issuers are also targeting other major Japanese stocks, including SoftBank Group, Nintendo, bitcoin-focused Metaplanet, Tokyo Electron, Toyota Motor and Lasertec.