A new report from crypto exchange Bybit, titled “Beyond the Hype: The Realities of Institutional Memecoin Investments,” highlights the increasing interest in meme coins among both institutional and retail investors. The report analyzes data from January 1 to May 1, showing that meme coins are becoming a significant part of crypto portfolios.

Bybit notes that institutional investors joined the memecoin trend as it peaked in late March. Their meme coin holdings surged by 226% from February to March, reaching $204 million, and further increased to $293.7 million in April. However, as market sentiment declined, institutions sold off half their meme coins, ending the period with $139 million in holdings—still 125% higher than at the beginning of the year, suggesting a return to high-risk investing is anticipated.

For retail investors, meme coin holdings spiked dramatically during the peak in early April, rising 478% from February to April. They then reduced their holdings from $567 million to $371 million.

The report also reveals that as of May 1, dogecoin (DOGE) remains the most popular meme coin for both retail and institutional investors. Institutions allocate 36.17% of their meme coin holdings to DOGE, while retail investors allocate 24.58%. Both groups also prefer Ethereum-based meme coins, with retail investors holding 20.95% in PEPE and 14.61% in SHIB, compared to institutions holding 22.23% in PEPE and 10.39% in SHIB.

The report highlights a notable difference in investment strategies: retail investors allocate a larger portion of their portfolios to meme coins (4%) compared to institutions (2.5%). Despite this, both groups mainly invest in established meme coins with a proven track record. The report notes that DOGE has become a staple in long-term holdings for both groups, reflecting its iconic status and strong performance. Additionally, institutions have noticed BONK, with a snapshot from May 1 showing they hold a 10% allocation in this coin.