U.S. Investors Favor Meme Coins Over Bitcoin: Gemini

• Meme coins make the first crypto purchase for 31% of new US investors, ahead of Bitcoin and Ethereum
• Despite high risks and volatility, global first-time buyers are also drawn to meme coins.

A new study from Gemini shows that meme coins have become the go-to choice for many first-time U.S. crypto investors. Over 31% of new buyers in the United States choose memecoins before exploring more established digital currencies like Bitcoin and Ethereum.

This shift marks a growing trend where newer investors use memecoins as a stepping stone into the broader crypto space.

Meme Coins Attract First-Time Buyers Across Major Economies

It is worth noting that the appeal of meme coins is not limited to the U.S. Globally, more than 30% of first-time crypto users are purchasing these tokens early on. 

According to the Gemini study, the trend is extreme in Australia, the United Kingdom, Singapore, Italy, and France. In Australia, 30% of new investors start with meme coins, while the figures sit at 28% in the U.K., 23% in Singapore, 22% in Italy, and 19% in France.

Analysts say this pattern shows how meme coins are a gateway to the larger crypto market. Many beginners find them easy to access and understand. They also offer a simple way to learn about key crypto concepts such as wallets, tokenomics, and on-chain transactions.

Despite their fun reputation, meme coins often lead users to more serious assets. Gemini’s data confirms that over 94% of meme coin buyers later invest in top digital currencies like Bitcoin and Ethereum. This indicates that while the entry point may be lighthearted, most investors are taking steps toward more stable holdings in time.

While the above study covers the rates at which new market entrants invest in digital assets. A recent report highlighted that Pine Analytics found over 15,000 memecoins that debuted on the Solana blockchain through the Pump.Fun platform was manipulated by coordinated pump-and-dump operations.

Memecoins are highly volatile, often driven by celebrity hype and social media buzz. As recently mentioned in our report, a major memecoin scandal involved the LIBRA token. Its market cap soared considerably at launch but crashed by 89% within three hours. The incident highlighted the risks and manipulation common in the memecoin space.

Crypto ETFs See Strong Growth Among U.S. Traders

In addition to the meme coin boom, there is growing interest in institutional tools like exchange-traded funds (ETFs). Gemini reported that nearly 40% of U.S. crypto holders use ETFs to manage their investments. 

Notably, this is a slight rise from 37% the previous year. As revealed, among these investors, 25% use exchange wallets and ETFs, while 14% rely solely on ETFs.

Spot Bitcoin ETFs, in particular, are gaining momentum. In May, the 11 U.S.-listed funds recorded net inflows of $5.77 billion, the highest figure since November 2024. BlackRock’s iShares Bitcoin Trust led the way, with a 25% increase in holdings. The value of its Bitcoin shares reached $994 million by the end of March.

Still, CNF reported recently that Nasdaq has submitted its filing with the SEC to list the 21Shares DOGE ETF. This is an attempt to bring the memecoin into mainstream financial markets.