Brew Markets: "The Meme ETF Is Back! & Why Your Local Bank Is Scaling Up"

Host: Ann Berry
Date: October 8, 2025

Overview

In this episode, host Ann Berry unpacks the re-emergence of meme stock ETFs, analyzes a major regional bank merger (Fifth Third and Comerica), and demystifies the growing buzz around asset tokenization by fintech leaders like Robinhood, BlackRock, and Nasdaq. The conversation moves deftly between the day’s hottest stock stories and deep dives into how these trends reflect broader shifts in how institutions and consumers engage with markets and banking.

Key Discussion Points & Insights

1. Meme Stock ETFs: Institutions Chase Retail Sentiment

[00:31 - 05:08]

• What’s Happening:
  Roundhill Investments just launched the Roundhill Meme Stock ETF (ticker: MEME), designed to "actively manage and quickly rotate into trending meme stocks."

• ETF Breakdown:

  • Largest holding: Opendoor – activist investor Eric Jackson recently defended its fundamentals on the show ("he is very clear in his mind that this is not a meme stock").
  • Other top holdings: Applied Digital (data centers), HIMS & Hers (telehealth), and several quantum computing names.
  • Currently small, with only $250,000 AUM at launch.
  • Similar precedent: VanEck's Social Sentiment ETF (ticker: BUZZ).
    • BUZZ launched after the 2021 GameStop/AMC mania, had severe losses in 2022 (nearly -50% returns), but rebounded later.
    • Major holdings: GameStop, Intel, Palantir, Sofi.

• Institutional Angle:

  • ETF providers and big banks are trying to monetize retail enthusiasm, often by launching products like meme ETFs or selling "memification" data to hedge funds.
  • Quote: Ann Berry explains, "Institutions keep trying to figure out how to play the sentiment game when it comes to these names" [01:38].

• Critical View:

  • Ann is skeptical, does not personally own these ETFs, and avoids meme stocks in her own portfolio—but stresses the trend’s influence on the broader market.
  • "As retail investor activity grows, I expect more of these sorts of products to sprout along with it. We will keep watching." [04:47]

2. Bank Mergers: Fifth Third Acquires Comerica

[05:18 - 14:48]

• Deal Details:

  • Fifth Third Bank acquires Comerica Bank for $11 billion in an all-stock deal.
  • Creates one of the top 20 largest US banks with $288 billion in total assets.
  • Comerica shares shot up 17% on announcement; Fifth Third remained flat.

• Industry Trend:

  • The number of FDIC-insured banks has halved since 2005, from 9,000 to fewer than 4,500.
  • Rising costs associated with technology, cybersecurity, and compliance push smaller banks toward consolidation.

• Strategic Rationale:

  • Big national banks like JPMorgan, Bank of America, and Wells Fargo dominate deposits (30% collectively).
  • Regional banks—like Fifth Third and Comerica—focus on reliable local retail deposits and relationships.
  • Merging diversifies risk (commercial vs. retail deposit bases) and pools resources for expensive tech investments.

• The “Stickiness” Factor:

  • John shares a personal anecdote of becoming a loyal local bank customer thanks to tailored perks and service:
    "I have found that I'm now banking in one place and I'm going to stick there." [09:19]
  • Ann contrasts this with the “flightiness” of major institutional depositors during the March 2023 mini banking crisis (SVB, Signature, First Republic).

• Hybrid Strategies Emerging:

  • Big banks try to “get local”; regionals try to “get bigger.”
  • Example: JPMorgan CEO Jamie Dimon’s summer bus tours to branch locations in the Deep South.
    • "JP Morgan is trying to get into the Deep South... [Huntsville, Alabama is] a thriving, highly affluent town." [11:53]

• Experiential Branching:

  • Trend of banks doubling as cafes (e.g., Capital One Cafes) to drive foot traffic and cement relationships.

• Regulatory Backdrop:

  • Laxer merger oversight and easing capital requirements (in a Trump administration) may encourage a wave of future financial M&A.
  • "This deal does feel like it's just the beginning of a series of other bank deals we are likely to see at some point over the next 18 months to 36 months." [13:36]

3. Tokenization: Stocks on Blockchain Explained

[15:46 - 19:06]

• Listener Question:
  Mateo (San Francisco) asks: What is tokenization in the context of Robinhood's new stock tokens for European users?

• What is Tokenization?

  • Ann: "Tokenization is the process of representing a real world asset... with a digital token on a blockchain. Think of it as a digital twin of a traditional asset—with the token mirroring its value and performance, a bit like a derivative." [16:08]
  • Robinhood offers over 200 stock tokens, mirroring actual stocks held in custody.
  • Major players adopting:
    • BlackRock CEO Larry Fink: “Every asset can be tokenized.”
    • Nasdaq: Filed to enable tokenized security trading in the US by next year.
    • Hamilton Lane: Now offers tokenized private equity funds.

• Why Is This a Trend?

  • Faster settlement: Blockchain can clear trades in real time vs. multi-day traditional settlement.
  • Global access: Broader access to investing, bypassing legacy infrastructure.

• Risks & Limits:

  • Tokenization doesn’t necessarily grant legal rights to the actual underlying asset.
  • Notoriously illustrated when Robinhood issued “stock tokens” for OpenAI without approval; OpenAI insisted these were unauthorized and conferred no actual equity rights.
    • "OpenAI quickly posted on X to clarify...the tokens were not real OpenAI equity and that it had not approved any transfer of shares." [18:11]
  • Ongoing concerns around authentication, cybersecurity, and potential legal disputes.

• Mainstreaming:

  • It’s “going mainstream” as heavyweights like BlackRock get involved. More coverage to come as Ann plans to speak directly with Robinhood.

4. Market Wrap and Headlines

[19:10 - 21:08]

• Closing Market Numbers:

  • Dow: Flat
  • S&P 500: +0.5%
  • Nasdaq: +1.1%

• Featured Headlines:

  • AST SpaceMobile soared 19% after a deal with Verizon for satellite cellular service (competition for Starlink).
  • Figma up 17% after integrating its design platform with ChatGPT—part of a broader trend of business tools integrating with AI platforms.

• Notable Moment:

  • Nvidia headlines again: Jensen Huang confirms Nvidia’s $2 billion investment in Elon Musk's XAI.
    • When asked if things are “getting too circular and too toppy,” Huang responded (paraphrased): "I just wish I had invested more earlier when I had the chance." [20:57]

Notable Quotes

• On Meme ETFs:
  "While one person's meme stock is another's misunderstood opportunity, differences in opinion make a market."
  – Ann Berry [01:22]

• On Bank “Stickiness”:
  "I have found that I'm now banking in one place and I'm going to stick there."
  – John [09:19]

• On Tokenization:
  "Tokenization is the process of representing a real world asset—like a share or bond—with a digital token on a blockchain... Think of it as a digital twin."
  – Ann Berry [16:08]

• On Regulation and M&A:
  "This deal does feel like it's just the beginning of a series of other bank deals we are likely to see at some point over the next 18 months to 36 months."
  – Ann Berry [13:36]

• On AI Investing Hype:
  "I just wish I had invested more earlier when I had the chance."
  – Jensen Huang (as paraphrased by Ann Berry), regarding Nvidia's investment in XAI [20:57]

Timestamps for Key Segments

• 00:31 – Introduction to meme ETFs and Roundhill’s launch
• 01:22 – Defining meme stocks vs. misunderstood opportunities
• 04:47 – Institutional attempts to profit from meme trends
• 06:08 – Fifth Third & Comerica merger details and market context
• 09:19 – Personal banking loyalty; stickier deposits
• 11:53 – Major banks’ strategy to get “local” in underserved affluent areas
• 12:57 – Experiential banking; branches as cafes
• 13:36 – Regulatory climate and financial sector consolidation forecasts
• 15:46 – Audience question: the mechanics and risks of tokenization
• 16:08 – Plain explanation of asset tokenization
• 18:11 – Controversy: Unauthorized OpenAI tokenization
• 19:10 – Market wrap and major headlines
• 20:57 – Nvidia investing in Elon Musk’s XAI; “I wish I’d invested more earlier”

Tone and Takeaways

• The show maintains a breezy yet incisive tone, mixing Wall Street insights with relatable stories and pop culture references.
• Ann Berry blends skepticism with genuine curiosity, always looking out for the average retail investor and highlighting the intersection between financial innovation and real-world impacts.
• The episode is a must-listen (or read—via summary!) for anyone wanting perspective on meme stock mania 2.0, the future of local banks, or why “tokenization” is suddenly the hottest jargon among Wall Street and Silicon Valley titans.