Binance Holdings Ltd., the world's largest virtual asset exchange, has launched a perpetual futures product that tracks a U.S. exchange-traded fund (ETF) following Japanese stock market prices, following its Korea move.
According to the virtual asset industry on the 20th, Binance Holdings Ltd. on the previous day at 10:30 p.m. listed the "EWJUSDT" index perpetual futures. The underlying asset is the "iShares MSCI Japan (EWJ)" ETF listed on NYSE Arca. EWJ is a product that invests in large- and mid-cap stocks listed on the Japanese stock market, including Toyota Motor and Mitsubishi.
Tether (USDT), which is linked to the value of the U.S. dollar, is used as margin for this product, and up to 10x leverage is supported. Other virtual assets such as Bitcoin can be used as cross margin.
Earlier, on the 17th, Binance Holdings Ltd. listed "EWYUSDT," a perpetual futures contract that tracks the Korea stock market, including Samsung Electronics and SK hynix. In effect, the Korea and Japan stock markets are transacted 24/7, 365 days a year on overseas exchanges.
By constituent stocks, these are products related to Korea and Japan equities, but they do not confer shareholder rights in the actual stocks or rights to ETF revenue distribution. EWYUSDT trades in a linked structure that places another bet on the price movements of the EWY ETF traded on NYSE Arca.
The ETFs of Korea and Japan hold different constituent stocks. The Japan ETF is spread across various sectors such as industrials, financials, and healthcare, while the Korea ETF has a semiconductor weighting close to half. The EWJ ETF holds a total of 274 stocks, and the top 10 account for a combined 25.38%.
The EWY ETF that tracks the Korea stock market holds 83 stocks, and the top 10 account for a combined 57.66%. The weights of the top two, Samsung Electronics and SK hynix, are 22.46% and 19.39%, respectively, the largest. Considering that Hyundai Motor in third place has a 2.83% weight, the semiconductor concentration is pronounced.