The Gateway to Crypto's Future: Why Memecoins and ETFs Are Driving the Next Bull Run

Eli GrantTuesday, May 27, 2025 11:47 am ET
3min read

The crypto market is at a pivotal inflection point. For the first time, 94% of memecoin owners also hold traditional cryptocurrencies, according to Gemini's 2025 Global State of Crypto Report—a staggering figure underscoring how meme tokens like DOGE and PEPE are acting as gateway assets to broader adoption. This is no longer a niche phenomenon: 50% of Gen Z and Millennials globally now own or have owned crypto, driven by cultural resonance and low barriers to entry. Meanwhile, institutional investors are accelerating their moves through regulated vehicles like crypto ETFs, with 39% of U.S. crypto owners now invested in them—up from 37% in 2024. The question for investors is clear: How do you capitalize on this dual momentum?

Memecoins: The Onramp to Mass Adoption

Memecoins aren't just jokes—they're the Trojan horses of crypto adoption. In France, 67% of crypto investors own memecoins, the highest globally, while the U.S. sees 55% adoption. The data is unequivocal: Memecoins are attracting new users who then diversify into Bitcoin, Ethereum, and beyond. Consider this: 31% of U.S. investors bought memecoins first, with similar patterns in Australia (30%) and the U.K. (28%). These are not “dumb money” trends; they're the democratization of financial experimentation.

Take Dogecoin (DOGE), which has grown to a $34.8 billion market cap, or Pepe (PEPE) at $6.2 billion. Their liquidity and cultural cache make them ideal entry points. But this isn't just about FOMO. Memecoins with network effects—like Shiba Inu's integration with decentralized apps—will outlast meme-driven volatility. The key is to prioritize memecoins with real-world utility and developer activity, not just viral appeal.

ETFs: The Institutional Bridge to Crypto

While memecoins attract retail investors, crypto ETFs are the gateway for institutions. In the U.S., 39% of crypto owners now hold ETFs, a figure set to rise as BlackRock's iShares Bitcoin Trust nears $48.5 billion in assets. The U.K. trails at 41%, but its 24% adoption growth (vs. 18% in 2024) signals demand even amid regulatory uncertainty. Meanwhile, Italy leads Europe at 47%, demonstrating how robust frameworks—like the EU's MiCA—can accelerate adoption when paired with investor confidence.

The regulatory tailwinds are undeniable. The U.S. Strategic Bitcoin Reserve (SBR), launched under Trump, has boosted trust among non-owners, with 23% citing it as a reason to consider crypto. This legitimacy is critical: It transforms crypto from a fringe asset to a mainstream financial tool. For investors, this means allocate to ETFs like the ProShares Bitcoin Strategy ETF (BITO) or VanEck's XBTF, which offer compliance, liquidity, and exposure to Bitcoin's institutional demand.

The UK's Outlier Growth: A Blueprint for Unregulated Markets?

The U.K. offers a fascinating case study. Despite lax regulatory clarity—its Financial Conduct Authority still treats most cryptos as high-risk assets—crypto ownership there has jumped from 18% to 24% in a year. This suggests that regulatory ambiguity isn't a barrier to adoption when market forces and cultural momentum align. For investors, this signals opportunity in regions where regulation lags innovation, provided the memecoins in question have global liquidity and community support. The U.K. model could replicate in Asia-Pacific, where Singapore's 59% memecoin adoption and Hong Kong's crypto-friendly policies are creating hubs for cross-border ETF flows.

The Regulatory Crossroads: MiCA and Beyond

The EU's MiCA regulation, now fully in force, aims to harmonize crypto rules across member states. While it creates compliance costs for issuers, it also legitimizes crypto as an asset class, attracting institutional capital. However, memecoins face scrutiny over their utility: MiCA's emphasis on transparency and anti-money laundering (AML) rules could weed out speculative tokens without real-world applications. Investors should focus on memecoins that comply with MiCA—like those with robust white papers and decentralized governance—while monitoring how the EU's Travel Rule (requiring crypto transfers to include sender/receiver details) impacts liquidity.

The Investment Playbook: Allocate Now, Monitor Closely

  1. Memecoins with Network Effects: Prioritize DOGE (its Shiba Inu partnership) and PEPE (strong community-driven use cases). Avoid gimmicks like the Official Trump (TRUMP) coin, which lacks utility.
  2. Bitcoin ETFs First, Altcoin ETFs Next: The U.S. Bitcoin ETF boom is still in its early innings. For the aggressive investor, track potential Ethereum ETFs (market cap $300+ billion) once regulatory clarity emerges.
  3. Watch the U.K. and Asia-Pacific: These regions' adoption surges, even with regulatory uncertainty, highlight where retail demand is strongest.
  4. Monitor MiCA's Cross-Border Effects: The EU's framework could set global standards, but watch how it interacts with U.S. SEC rules and emerging markets like Singapore.

Conclusion: The Bull Run Isn't Over—It's Just Beginning

The crypto market is at a historic inflection point. Memecoins are onboarding millions, ETFs are institutionalizing access, and demographics are shifting decisively toward adoption. The 23% of U.S. non-owners influenced by the SBR signal a latent market ready to activate. For investors, this is a once-in-a-decade opportunity to position in memecoins with staying power and ETFs that bridge retail and institutional demand. The risks? Regulatory uncertainty and volatility. But the rewards—a multi-trillion-dollar market's next phase—are too vast to ignore.

Act now, or risk missing the ride. The crypto revolution isn't coming—it's here.

Invest with urgency, but with discipline. The next bull run belongs to those who bet on the gateways—memecoins and ETFs—and the trends driving them.