Bitrabo Editorial
A recent report from Bybit sheds light on the significant investments made by institutional investors in meme coins like Dogecoin, Shiba Inu, and Pepe. These investors have been active in trading these meme coins throughout the year, accumulating substantial holdings.
Institutional Investors’ Increasing Interest in Meme Coins
Between February and March, institutional investors started acquiring meme coins such as Dogecoin, Shiba Inu, and Pepe, aligning with the rise of the meme coin trend. Their combined holdings in these coins surged by 226% to $204 million. The momentum continued in April, with their total investment reaching $293.7 million before decreasing to $139 million in May as market sentiment shifted.
Anticipating a downturn in meme coin prices, these investors took profits, showcasing a cautious approach despite their initial heavy investment. The growing adoption of meme coins by institutional investors reflects the increasing popularity of this crypto asset class in 2021.
VanEck’s introduction of a meme coin index further emphasized institutional interest in this sector, tracking the performance of key meme coins like Dogecoin, Shiba Inu, Pepe, Dogwifhat, Floki, and Bonk.
Retail investors also showed substantial engagement with meme coins, witnessing a 478% increase in holdings from February to April. However, similar to institutional investors, they trimmed their positions, reducing their meme coin exposure from $567 million to $371 million.
Dogecoin Dominates Institutional and Retail Investors’ Meme Coin Portfolios
Bybit highlighted Dogecoin as the primary holding among both institutional and retail investors in the meme coin space. Institutional investors allocated a larger share of their portfolio to Dogecoin, accounting for 36.17% compared to retail investors’ 24.58%.
Dogecoin’s appeal lies in its higher liquidity and relative stability, making it a favored choice for investors. Additionally, Ethereum-based meme coins like Shiba Inu and Pepe also commanded a significant share of both institutional and retail investors’ meme coin holdings.
Shiba Inu and Pepe constituted 20.95% and 14.61% of retail investors’ meme coin portfolios, while institutions invested 22.23% and 10.39% in these coins, respectively. Among newer meme coins, Solana-based BONK emerged as a popular choice, with retail investors allocating $136 million and institutions allocating $74.5 million to this coin.