U.S. asset managers are seeking SEC approval for leveraged ETFs tied to Japanese stocks including Kioxia Holdings, Toyota Motor, Sony Group and SoftBank Group, a move that could open a route for single-stock leveraged products to reach Japanese retail investors despite Japan's domestic ban. As of Aug. 14, five issuers including Turtle Capital Management, ProShares and Tidal Financial Group had filed this summer for Kioxia funds targeting two or three times the stock's daily move. Toyota and Sony already have U.S.-listed ADRs, which market observers see as lowering the approval hurdle, while Kioxia's lack of an ADR could slow review. Japan permits leveraged ETFs on indexes only, but U.S.-listed products can be sold locally as foreign investment trusts after notification to the Financial Services Agency. Matthew Tuttle, CEO of Turtle Capital, told Nikkei his firm would "definitely register it in Japan as a foreign investment trust" if a Kioxia product is approved. The setup has raised concern that Japan could face a repeat of South Korea, where Samsung Electronics and SK Hynix leveraged ETFs launched on May 27, fueled sharp swings and prompted tighter rules from July 31; daily volumes later fell by nearly 90% from their peak. Because leveraged ETFs rebalance derivatives positions daily, heavy inflows can amplify volatility in the underlying shares and spill into related sectors.