The world has witnessed a staggering 95% increase in the population of crypto millionaires over the past year, driven by the exponential growth of bitcoin exchange-traded funds and other crypto assets. According to a recent report by New World Wealth and Henley & Partners, there are now 172,300 individuals globally holding more than $1 million in crypto assets, up from 88,200 in the previous year. This surge in numbers signifies a significant shift in wealth creation patterns, with the number of pure bitcoin millionaires more than doubling to 85,400.
The expansion of crypto wealth extends beyond millionaires, reaching up the wealth ladder to include 325 crypto centimillionaires and 28 crypto billionaires. This growth can be attributed to the rapid proliferation of bitcoin ETFs, which have accumulated over $50 billion in assets since their launch in January. The market cap of crypto assets has surged to $2.3 trillion, up from $1.2 trillion last summer, as a result of the increasing value of various coins in the market.
Bitcoin continues to maintain its dominant position in attracting long-term investors who acquire substantial holdings in the cryptocurrency. Of the six new crypto billionaires minted in the past year, five have accrued their wealth primarily from bitcoin investments. This underscores the enduring appeal of bitcoin and its ability to generate substantial returns for investors.
Forbes has identified Changpeng Zhao, the founder and former CEO of Binance, as the wealthiest crypto billionaire for the third consecutive year. With an estimated net worth of $33 billion, Zhao’s wealth has surged by over $10.5 billion in the past year. Following Zhao is Brian Armstrong, the co-founder of Coinbase, with a net worth of $11 billion. Giancarlo Devasini, the CFO of Tether, and Michael Saylor, the co-founder of MicroStrategy, also feature prominently on the list of the richest crypto billionaires.
While some crypto assets are still recovering from their 2021 highs, the recent resurgence of bitcoin marks a significant milestone in its price trajectory. The growing acceptance of crypto assets among major asset management firms like BlackRock and Fidelity, coupled with the support of Morgan Stanley’s extensive network of brokers, is expected to catalyze further wealth creation among large crypto holders. This trend is likely to create a new breed of millionaires and billionaires, transforming the traditional wealth landscape.
The increasing wealth derived from crypto assets has prompted a growing number of affluent individuals to seek residency in tax-friendly and crypto-friendly jurisdictions. According to Henley & Partners, many of the newly minted crypto millionaires are exploring opportunities to relocate to countries with supportive regulatory frameworks for cryptocurrencies. Singapore, with its progressive banking system and robust regulatory environment, leads the pack as the most favorable destination for crypto enthusiasts. Hong Kong, the United Arab Emirates, and the U.S. follow closely behind in providing attractive residency options for the burgeoning crypto elite.
The rise of crypto millionaires signals a new era of wealth creation driven by digital assets and blockchain technology. As the crypto market continues to evolve and expand, the landscape of global wealth distribution is bound to undergo a significant transformation, with crypto assets playing a pivotal role in shaping the financial fortunes of individuals worldwide.