The Meme ETF is back. Is it late to the party again?

Roundhill Investments has relaunched its Meme Stock ETF (MEME), an actively managed fund designed to capitalize on current volatile 'meme' stocks, with Opendoor Technologies as its largest holding. This reintroduction, however, is seen by some analysts, like BTIG's Jonathan Krinsky, as a potential indicator of market exuberance and froth, drawing parallels to the original MEME ETF's launch near a market peak in late 2021, which preceded significant declines in meme stocks and the broader market. The new ETF fell 1.8% on its first day of trading, contrasting with new all-time highs for the S&P 500 and Nasdaq.

Analysis

Roundhill Investments resurrected an exchange-traded fund focused on meme stocks on Wednesday, aiming to give everyday investors a simple way to play the new class of buzzy-yet-volatile stocks. But if history repeats itself, that could signal the trade — and broader market — is already losing its steam. Roundhill said the Meme Stock ETF, which launched again on Wednesday, trades under the ticker MEME. That's the same ticker the firm used for its previous meme-focused ETF that launched in late 2021 before closing two years later. "Meme stocks started as a rebellion but have grown into a revolution," Dave Mazza, CEO of Roundhill Investments, said in a press release. "With MEME, we offer investors a tool to capture that power through an actively managed ETF that can rotate quickly into the stocks dominating the conversation today." Its previous run offers a cautionary tale. The ETF went live in early December of that year, just as the Nasdaq Composite was hitting a peak. From the ETF's 2021 launch to the announcement of its closure in late 2023, the Nasdaq tumbled nearly 10%. The broad S&P 500 shed more than 3% in that timeframe. Well-known meme stocks fared much worse. GameStop plunged around 69% in that period, while AMC cratered by more than 96% in the nearly two-year span. "Meme stocks were a large part of the exuberant sentiment in the 2020-2021 market, ultimately leading to a cyclical peak," Jonathan Krinsky, BTIG's chief market technician, in a Wednesday note to clients that pointed out the irony of the relaunch. Krisnky added that the meme fund launching was an indicator of market froth "reaching fever pitch." Roundhill's relaunch can be taken as "another sign of some exuberance," he warned. To be sure, the new iteration of the fund reflects the new generation of meme stocks. During the Covid meme stock craze, Reddit user "Roaring Kitty" and followers of the WallStreetBets forum led stock squeezes of GameStop and AMC, among other names. In today's fund, Opendoor Technologies is the largest holding with a weight of more than nearly 12%, according to Roundhill data as of Wednesday. The stock — which finished last year below $2 a share — has skyrocketed 430% this year amid attention from hedge fund manager Eric Jackson. The Meme ETF's biggest holdings | Ticker | Stock | Weight (%) | |---|---|---| | Opendoor Technologies | OPEN | 11.9 | | Plug Power | PLUG | 10.7 | | Applied Digital | APLD | 8.7 | | QuantumScape | QS | 8.3 | | Cipher Mining | CIFR | 7.3 | Source: Roundhill, as of 10/8/2025 Multiple quantum computing stocks, which have also seen huge swings this year, are also among the ETF's largest holdings. QuantumScape accounts for more than 8% of its weight, while Rigetti Computing and Quantum Computing Inc each make up more than 4%. The ETF fell 1.8% in its first session back on Wednesday. By comparison, the S&P 500 and Nasdaq both rose to all-time highs. Roundhill Investments has relaunched its Meme Stock ETF (MEME), positioning it as an actively managed tool to capture the power of current conversation-driving stocks. The ETF, however, declined 1.8% on its first trading day, contrasting sharply with the S&P 500 and Nasdaq Composite reaching new all-time highs. This immediate underperformance against a surging broad market may signal initial investor hesitancy. The relaunch carries historical baggage, as the previous MEME ETF, active from late 2021 to 2023, coincided with a Nasdaq peak. During its prior run, well-known meme stocks like GameStop (GME) and AMC Entertainment (AMC) plunged approximately 69% and 96%, respectively, while the Nasdaq fell nearly 10% and the S&P 500 shed over 3%. BTIG's chief market technician Jonathan Krinsky views this relaunch as "another sign of some exuberance," drawing parallels to the market froth observed in 2020-2021. The new fund's composition reflects a different generation of meme stocks, with Opendoor Technologies (OPEN) as its largest holding at nearly 12%. OPEN has surged 430% year-to-date, driven by hedge fund attention, while other substantial holdings include volatile quantum computing stocks. This shift indicates a focus on currently trending, high-momentum assets, distinct from the original COVID-era meme plays.

Key Decisions for Investors

• Exercise caution regarding the timing of this relaunch, as the previous MEME ETF's debut coincided with a market peak and subsequent significant declines in meme stocks and broader indices.
• Thoroughly evaluate the fundamental health and long-term prospects of the new ETF's holdings, such as Opendoor Technologies (OPEN) which has seen a 430% YTD surge, rather than relying solely on recent momentum or 'meme' status.
• Consider this relaunch as a potential indicator of increasing market exuberance and review overall portfolio allocations, potentially reducing exposure to highly speculative assets or implementing hedging strategies.