A recent report by cryptocurrency exchange Bybit reveals a significant increase in institutional investments in meme coins this year. The figures show a remarkable growth of nearly 4.5 times, from $63 million to $300 million in April, indicating a rising interest in this sector among professional investors.

Dogecoin (DOGE) and Shiba Inu (SHIB) were the primary beneficiaries of this investment surge, thanks to their high liquidity in the spot market. This liquidity made them attractive to institutional investors, who could buy and sell large quantities without significantly affecting market prices. Another altcoin that gained traction was BONK, attracting over $75 million in institutional investment and emerging as the most preferred new meme coin this year.

However, in May, institutional holdings in meme coins decreased by almost half to $125 million, attributed to profit-taking activities. Despite this drop, the significant growth earlier in the year indicates a persistent interest in meme coins. Interestingly, institutional investors shifted their focus towards other cryptocurrencies, with a decrease in stablecoin holdings and an increase in investments in Bitcoin (BTC), Ethereum (ETH), and meme coins.

As of May 1, Dogecoin held the largest share of meme coin holdings among both individual and institutional investors. Institutional investors allocated 36% of their meme coin investments to DOGE, while individual investors allocated 24.5%. This preference could be attributed to DOGE's higher liquidity and perceived stability compared to other meme coins.

In conclusion, the report highlights a growing interest in meme coins among institutional investors, driven by their liquidity and potential for significant returns. While there may be fluctuations in investment figures, the overall trend suggests a persistent interest in this sector. As the cryptocurrency market continues to evolve, it will be interesting to see how institutional investors adjust their strategies and allocate their investments in the meme coin space.