Wallet Trims SK Hynix Short, Adds to ADR Long
A single wallet cut its Korean-share short by about 35% while adding to the American depositary receipt long, on the same day the SKHY premium narrowed.
Updated on Nov. 2, 2026 in Corporate Finance
A wallet beginning 0x0242 bought back about $7.215 million of its SKHX short position on Nov. 2, 2026, taking a loss of about $92,100 on the reduction. The same wallet added about $1.15 million to its SKHY long position.
Why it matters
The paired trade links a short in the Korean-share contract with a long in the American depositary receipt tied to SK Hynix, so movements in the price gap between the two directly affect the position's value. The premium of SKHY over SKHX had widened sharply before narrowing, which bears on how the spread is being traded.
Wallet positions show about $7.215 million of SKHX short bought back and about $1.15 million added to SKHY, leaving roughly $13.8 million short and $5.91 million long. The combined paired position carried an unrealized loss of about $518,000, and the reasons for the trades were not stated.
The details
The wallet beginning 0x0242 reduced its SKHX Korean-share short by about 35% on Nov. 2, 2026, while adding about $1.15 million to its SKHY American depositary receipt long. A second wallet beginning 0x7fda held a paired position valued at about $22.47 million combined.
Timeline
Oct. 2, 2026: SKHY premium over SKHX was about 40.71%.
Oct. 20, 2026: SKHY premium over SKHX widened to about 51.05%.
Nov. 2, 2026: Wallet cut its SKHX short and added to its SKHY long; premium narrowed to about 42.34%.
Market Dynamics
The premium between the SKHY American depositary receipt and the SKHX Korean-share contract rose from about 40.71% in early October to 51.05% on Oct. 20 before easing to 42.34% by Nov. 2. The pattern shows the spread moving within a wide band rather than settling.
Holders of similar paired positions face mark-to-market swings when the premium between a local share class and its depositary receipt moves, as this wallet's roughly $518,000 unrealized loss shows. Retail investors trading the SKHX/SKHY spread should weigh that exposure against the cost of holding both legs.
The takeaway
Spreads between a share class and its depositary receipt can widen by ten points or more within weeks, so position sizing should account for that range. Monitor the premium directly rather than assuming it will revert.
Further reading
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