Institutional allocations to meme coins have surged over 300% this year, touching a high of almost $300 million in April.Dogecoin and shiba inu were favored for their liquidity, with BONK the most popular new meme coin.
The influx indicates how the sector is enjoying newfound favor among professional investors, Bybit said in a Wednesday report. Popular picks among institutional investors were dogecoin, mainly owing to their ample spot-market liquidity. Holdings were tracked exclusively on Bybit and do not include those on other exchanges.
As of May 1, DOGE had the largest share of meme coin holdings for both retail and institutional investors. Institutions allocated a larger proportion of funds to DOGE: 36% compared with retail investors' 24.5%.