The population of crypto millionaires in the world has seen a significant increase of 95% over the past year. According to a report from New World Wealth and Henley & Partners, there are now 172,300 individuals worldwide holding more than $1 million in crypto assets. This is a substantial increase from the 88,200 recorded the previous year. The number of pure bitcoin millionaires has more than doubled, reaching 85,400. Additionally, the ranks of the crypto rich have expanded across the wealth ladder, with 325 crypto centimillionaires and 28 crypto billionaires joining the elite club.
The surge in the population of crypto millionaires can be largely attributed to the rapid growth of bitcoin exchange-traded funds (ETFs). These funds have amassed more than $50 billion in assets since their launch in January, sparking a wave of institutional participation. The price of bitcoin has surged by 45% this year, reaching approximately $64,000. As a result, the overall market cap of crypto assets has skyrocketed to $2.3 trillion, up from $1.2 trillion last summer.
Forbes reports that the wealthiest crypto billionaire, holding the top spot for the third consecutive year, is Changpeng Zhao. Zhao, the founder and former CEO of crypto exchange Binance, boasts an estimated net worth of $33 billion. Following closely behind is Brian Armstrong, the co-founder of Coinbase, with an estimated wealth of $11 billion. Other notable figures in the list include Giancarlo Devasini, the chief financial officer of Tether, and Michael Saylor, the co-founder of MicroStrategy.
Despite fluctuations in the value of many crypto assets, the growing acceptance of these assets among major asset managers like BlackRock and Fidelity, aided by the extensive salesforce of Morgan Stanley, is expected to fuel further wealth creation among large crypto holders. The increasing institutional adoption of cryptocurrencies could lead to a significant shift in where the wealthy choose to reside and conduct business.
Many of the newly minted crypto millionaires are exploring opportunities to move to tax-friendly and crypto-friendly jurisdictions. According to Henley & Partners, there has been a noticeable increase in crypto-wealthy clients seeking alternative residence and citizenship options. In response to this trend, Henley has created a “Crypto Adoption Index” to rank countries based on their tax and regulatory stance towards crypto. Singapore currently holds the top spot on the index due to its supportive banking system, robust regulations, and alignment with global standards. Hong Kong, the United Arab Emirates, and the U.S. follow closely behind.
The rise in the population of crypto millionaires reflects the growing influence of cryptocurrencies in the global financial landscape. With the continued evolution of the crypto market and increased institutional participation, the number of crypto millionaires and billionaires is expected to rise further, reshaping traditional notions of wealth and investment.
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