In this photo illustration, a visual representation of the digital cryptocurrency, Bitcoin, is displayed in Paris, France on March 5, 2024.
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The world's population of crypto millionaires grew by 95% last year, driven by the rise of bitcoin exchange-traded funds and other crypto assets, according to a new report.
There are now 172,300 people worldwide holding more than $1 million in crypto assets, up from 88,200 last year, according to a report by New World Wealth and Henley & Partners. The number of pure bitcoin millionaires has more than doubled to 85,400.
The number of crypto rich has increased and they have continued to climb the wealth ladder. According to the report, there are now 325 crypto centimillionaires – those with $100 million or more in crypto holdings – and 28 crypto billionaires.
The surge reflects the rapid growth of the bitcoin ETF, which has now held more than $50 billion in assets since its launch in January and has fueled a wave of institutional participation.
The price of bitcoin has risen 45% this year to about $64,000. As the value of other coins has risen, the market capitalization of crypto assets has grown to $2.3 trillion, up from $1.2 trillion last summer, according to Henley & Partners.
According to Andrew Amoils, head of research at New World Wealth, five of the six new crypto billionaires created last year owe their new wealth to bitcoin, “which underscores bitcoin’s dominant position in terms of attracting long-term investors looking to invest large sums.”
According to Forbes, the richest crypto billionaire – for the third year in a row – is Changpeng Zhao, founder and former CEO of crypto exchange Binance, who has an estimated net worth of $33 billion. Zhao pleaded guilty to US money laundering charges in November and agreed to pay a $50 million fine. His wealth has increased by more than $10.5 billion in the past year.
Binance founder Changpeng Zhao attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris on June 16, 2022.
Benoit Tessier | Reuters
In second place is Brian Armstrong, co-founder of Coinbase, According to Forbes, his estimated wealth is $11 billion. According to the list, he is followed by Tether Chief Financial Officer Giancarlo Devasini and MicroStrategy co-founder Michael Saylor.
Granted, many crypto assets are still below their 2021 highs, and Bitcoin’s recent rise essentially marks a three-year journey to those levels. Crypto assets reached a market capitalization of $3 trillion in November 2021.
Nevertheless, large asset managers such as black Rock And Loyalty, with the help of Morgan Stanley's A salesforce of 15,000 brokers could boost wealth creation among large crypto holders.
Not only will crypto create more millionaires and billionaires, but it will also change where the wealthy live and work. According to Henley & Partners, many new crypto wealthy are looking to move to tax-friendly and crypto-friendly jurisdictions.
“We have seen a significant increase in crypto-wealthy clients seeking alternative residency and citizenship options,” said Dominik Volek, head of private clients at Henley & Partners.
To better advise new crypto nomads, Henley created the “Crypto Adoption Index,” ranking countries according to their tax and regulatory approach to crypto. According to Henley, Singapore ranks first on the index due to its “supportive banking system, significant investment, comprehensive regulation such as the Payment Services Act, regulatory sandbox, and alignment with global standards.”
Hong Kong ranked second, followed by the United Arab Emirates and the US. According to the report, 15% of the population in the US owns cryptocurrencies. “This is supported by strong infrastructure, a high density of crypto ATMs, crypto-friendly banks, and a growing number of businesses accepting cryptocurrencies,” the report said.