The world has seen a staggering 95% increase in the population of crypto millionaires over the past year. This surge is directly tied to the rise in popularity of bitcoin exchange-traded funds and other crypto assets. According to a report by New World Wealth and Henley & Partners, there are now 172,300 individuals globally who hold over $1 million in crypto assets, a significant increase from 88,200 individuals just a year ago.
The number of pure bitcoin millionaires has more than doubled, reaching 85,400. Furthermore, the report highlights the presence of 325 crypto centimillionaires with holdings of $100 million or more, as well as 28 crypto billionaires. This demonstrates the penetration of crypto wealth all the way up the wealth ladder, indicating a broad-based growth in crypto investments.
The report underscores the dominant position of bitcoin in attracting long-term investors who hold large crypto assets. Of the six new crypto billionaires created in the past year, five can attribute their newfound wealth to bitcoin. This speaks to the enduring appeal and value of bitcoin as a key asset in the crypto market.
Forbes identifies Changpeng Zhao, the founder and former CEO of Binance, as the richest crypto billionaire for the third consecutive year, with an estimated net worth of $33 billion. Following him is Brian Armstrong, the co-founder of Coinbase, valued at $11 billion. The list also includes Giancarlo Devasini, the CFO of Tether, and Michael Saylor, the co-founder of MicroStrategy. These individuals represent the cream of the crop in the crypto wealth hierarchy.
The rapid growth of bitcoin ETFs, with assets surpassing $50 billion since their launch in January, has sparked institutional participation in the crypto market. This influx of institutional money has contributed to the increase in the market cap of crypto assets to $2.3 trillion, up from $1.2 trillion last year. The endorsement of crypto assets by big asset managers such as BlackRock and Fidelity, along with support from Morgan Stanley’s vast network, is expected to further propel wealth creation among large crypto holders.
Despite some crypto assets still trading below their 2021 highs, the industry’s upward trajectory is evident. The acceptance of crypto assets among major asset managers and the emergence of crypto-friendly jurisdictions are poised to reshape where the wealthy choose to reside and operate. Many crypto-rich individuals are now considering tax-friendly and crypto-friendly jurisdictions as their preferred locations.
The trend of crypto wealth migration is becoming increasingly pronounced, with a growing number of crypto-rich clients seeking alternative residence and citizenship options. Countries like Singapore, which offers a supportive banking system, comprehensive regulations, and alignment with global standards, are attracting a significant number of crypto nomads. Hong Kong, the United Arab Emirates, and the U.S. also rank high on the list of preferred destinations for crypto-rich individuals looking to relocate.
The rise of crypto millionaires and billionaires signifies a seismic shift in the global wealth landscape. With bitcoin leading the charge, institutional adoption accelerating, and crypto-friendly jurisdictions gaining traction, the future looks bright for those invested in the world of digital assets.