Exchange-traded funds (ETFs) related to quantum computing have been weak since their debut. The impact of concerns over an economic recession shook the U.S. New York stock market overnight.
Samsung Active Asset Management's KoAct Global Quantum Computing Active was traded at 9,225 won on the KOSPI market at 9:02 a.m. on the 11th, which is 9.25% (940 won) lower than the reference price.
The same goes for other quantum computing ETFs that debuted on the same day. Shinhan Asset Management's SOL U.S. Quantum Computing TOP10 fell 9.1% (910 won) from its reference price. KB Asset Management's RISE U.S. Quantum Computing and Hanwha Asset Management's PLUS U.S. Quantum Computing TOP10 dropped 7.35% (735 won) and 5.78% (580 won), respectively, below their reference prices.
KIWOOM U.S. Quantum Computing, which debuted as the first domestic quantum computing ETF, is also continuing its downward trend. It started trading at 10,235 won on December 1 last year, but as of today, the stock price has fallen to 7,130 won.
The quantum computing-related stocks that these ETFs hold as underlying assets plummeted overnight. Rigetti Computing (RGTI) dropped 15.4%. IonQ (IONQ) fell 11.09%, and D-Wave Quantum (QBTS) decreased by 10.62%.
The NASDAQ index recorded its largest drop since September 2022, when it was disrupted by inflation shocks, leading to a freeze in overall market investment sentiment. Donald Trump, the President of the United States, noted in an interview with Fox News the previous day that we are in a 'transition' period when asked if he expects a recession. The market interpreted this as Trump signaling he would pursue policies to change the economic structure, even at the expense of short-term growth.
U.S. Treasury Secretary Scott Bensen said that there is no 'Trump put' to buoy the market, adding further shock. China and Canada, among others, responding to U.S. tariffs, also contributed to the burden.
However, asset management firms that introduced quantum computing ETFs said that quantum computing is a next-generation innovative technology, thus worth investing as the subsequent tech trend after artificial intelligence (AI).
Manager Kim Hee-deok of Samsung Active Asset Management stated, "With the impending full bloom of quantum computing, new quantum computing corporations are expected to grow rapidly, so our goal is to actively utilize the advantages of active strategies to quickly discover these corporations and to invest proactively before they are reflected in the underlying index."
Hanwha Asset Management ETF Division Head Kim Jung-seop remarked, "As the leadership of big tech companies coincides with the growth of pure quantum computing startups, the ecosystem is rapidly expanding, making this a product that investors looking for the 'next AI' should keep an eye on."