The crypto market has witnessed an unprecedented surge in the number of millionaires and billionaires over the past year. According to a report by New World Wealth and Henley & Partners, the population of crypto millionaires has increased by a staggering 95%, with 172,300 individuals worldwide holding more than $1 million in crypto assets.
The rise of pure bitcoin millionaires has more than doubled, reaching 85,400 individuals. This surge in crypto wealth can be attributed to the rapid growth of bitcoin exchange-traded funds (ETFs), which have accumulated over $50 billion in assets since their launch in January. The price of bitcoin has climbed 45% this year, reaching around $64,000, and the market cap of crypto assets has soared to $2.3 trillion.
The report also revealed that there are now 325 crypto centimillionaires, with holdings of $100 million or more, and 28 crypto billionaires. The majority of the newly minted billionaires have accumulated their wealth through bitcoin investments, highlighting the cryptocurrency’s dominant position in attracting long-term investors.
Forbes identified Changpeng Zhao, the founder of Binance, as the richest crypto billionaire for the third consecutive year, with an estimated net worth of $33 billion. Brian Armstrong, the co-founder of Coinbase, ranked second with an approximate wealth of $11 billion. Other notable figures include Giancarlo Devasini, the CFO of Tether, and Michael Saylor, the co-founder of MicroStrategy.
While some crypto assets may still be below their 2021 highs, the growing acceptance of cryptocurrencies among major asset managers like BlackRock and Fidelity could lead to further wealth creation among large crypto holders. The influx of institutional participation in the crypto market, along with the support from brokerage giants like Morgan Stanley, is expected to drive the creation of more millionaires and billionaires in the crypto space.
As the number of crypto millionaires and billionaires continues to rise, many of the newly wealthy individuals are seeking to move to tax-friendly and crypto-friendly jurisdictions. Countries like Singapore and Hong Kong, known for their supportive regulatory frameworks and banking systems, are becoming popular destinations for crypto enthusiasts looking to relocate. Henley & Partners’ “Crypto Adoption Index” ranks countries based on their crypto-friendliness, with Singapore leading the pack followed by Hong Kong, the United Arab Emirates, and the United States.
The exponential growth of crypto wealth and the emergence of a new class of millionaires and billionaires in the crypto space are reshaping the financial landscape. With the rising adoption of cryptocurrencies among traditional investors and the increasing influence of institutional players, the future of crypto wealth creation looks promising. As the rich continue to flock to tax-efficient and crypto-friendly jurisdictions, we can expect to see a shift in residency patterns and a new era of wealth creation in the digital asset space.