As reported by New World Wealth and Henley & Partners, the population of crypto millionaires worldwide has experienced a staggering 95% increase in the past year. This surge has resulted in a total of 172,300 individuals holding more than $1 million in crypto assets, up from 88,200 in the previous year. Particularly noteworthy is the fact that the number of individuals classified as pure bitcoin millionaires has more than doubled to 85,400. Furthermore, the report highlights the increasing presence of wealthy individuals in the crypto space, with 325 crypto centimillionaires (those with $100 million or more in crypto holdings) and 28 crypto billionaires now in existence.
The rise in the number of crypto millionaires can be attributed to the rapid growth of bitcoin exchange-traded funds (ETFs), which have accumulated over $50 billion in assets since their launch earlier this year. This influx of institutional participation has propelled the price of bitcoin to increase by 45% this year, reaching approximately $64,000. In tandem with the surge in bitcoin’s value, the market capitalization of crypto assets has soared to $2.3 trillion, up from $1.2 trillion the previous summer. This exponential growth underscores the growing appeal of cryptocurrencies as an investment asset class, attracting both retail and institutional investors.
According to Andrew Amoils, head of research for New World Wealth, bitcoin remains the dominant player in the creation of new crypto billionaires. Of the six new billionaires minted in the past year, five have amassed their fortunes primarily through bitcoin investments. This trend signifies bitcoin’s attractiveness to long-term investors seeking to build substantial crypto portfolios. Notably, Changpeng Zhao, the founder of Binance, reigns as the wealthiest crypto billionaire for the third consecutive year, with an estimated net worth of $33 billion. Despite legal challenges, Zhao’s wealth has surged by over $10.5 billion in the past year, solidifying his position as a key figure in the crypto space.
The Future of Crypto Wealth Creation and Global Residency Trends
While some crypto assets remain below their peak levels from 2021, the increasing adoption of cryptocurrencies by major asset managers like BlackRock and Fidelity bodes well for the future growth of crypto wealth. With support from financial institutions like Morgan Stanley, the influx of capital into the crypto market is expected to continue, potentially fostering the creation of more millionaires and billionaires. Notably, the rise of crypto wealth is also reshaping residency trends among the affluent, as many seek to relocate to tax-friendly and crypto-friendly jurisdictions. Countries like Singapore, Hong Kong, the United Arab Emirates, and the U.S. are among the top destinations for crypto millionaires looking for alternative residency and citizenship options. Henley & Partners’ “Crypto Adoption Index” ranks countries based on their regulatory stance towards crypto, providing valuable insights for those seeking to navigate the global landscape of cryptocurrency regulations.
The meteoric rise of crypto millionaires signifies a paradigm shift in wealth accumulation, driven by the growing prominence of cryptocurrencies as a legitimate asset class. As the crypto market continues to mature and attract institutional capital, the future of crypto wealth creation looks promising, paving the way for a new wave of affluent individuals in the digital currency space.
Leave a Reply