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

A South Korean funeral services company has reported an unrealized loss of about 45 billion won ($33 million) tied to investments in leveraged ether (ETH) exchange-traded funds (ETFs).

The Seoul-based Bumo Sarang, Korean for Parental Love, invested in the T-REX 2X Long BMNR Daily Target ETF (BMNU), a leveraged exchange-traded fund managed by Tuttle Capital Management that seeks to deliver 200% of the daily performance of Bitmine Immersion Technologies (BMNR), the world’s largest publicly traded holder of ether.

Leveraged ETFs are designed for short-term trading and can magnify both gains and losses, making them among the riskiest exchange-traded products available to retail investors.

The company’s losses are unrealized, meaning the holdings have not yet been sold. Still, the disclosure underscores the growing appetite in South Korea for speculative, crypto-linked investment products, particularly leveraged ETFs tied to digital asset firms and related equities.

South Korea has become one of the world’s busiest markets for leveraged and inverse ETF trading, with regulators warning investors about volatility and the risks associated with amplified exposure products.

The losses also reflect recent sharp swings in crypto-related equities as digital asset markets remain highly volatile.