The world has seen a significant increase in the number of crypto millionaires over the past year, with a staggering 95% growth in individuals holding more than $1 million in crypto assets. According to a report from New World Wealth and Henley & Partners, the number of pure bitcoin millionaires has more than doubled to 85,400. This surge in crypto wealth has extended to include 325 crypto centimillionaires and 28 crypto billionaires.
The rapid growth of bitcoin exchange-traded funds (ETFs) has played a crucial role in driving the increase in crypto wealth. With over $50 billion in assets and a wave of institutional participation, bitcoin ETFs have propelled the market cap of crypto assets to $2.3 trillion, up from $1.2 trillion just last summer. This surge has attracted long-term investors who see bitcoin as a lucrative investment opportunity.
Forbes reports that Changpeng Zhao, the founder of Binance, remains the richest crypto billionaire for the third consecutive year with an estimated net worth of $33 billion. Brian Armstrong, the co-founder of Coinbase, follows with an estimated $11 billion in wealth. Other notable figures include Giancarlo Devasini, the CFO of Tether, and Michael Saylor, the co-founder of MicroStrategy. These billionaires have seen their wealth grow substantially over the past year, underscoring the dominance of bitcoin in attracting large investors.
Despite fluctuations in the value of crypto assets, the growing acceptance of cryptocurrencies by major asset managers like BlackRock and Fidelity, along with support from institutions like Morgan Stanley, is expected to fuel further wealth creation among large crypto holders. As more institutions embrace crypto assets, the potential for creating new millionaires and billionaires in the crypto space continues to grow.
The rise of crypto wealth has led many affluent individuals to seek out tax-friendly and crypto-friendly jurisdictions to reside in. According to Henley & Partners, there has been a significant increase in wealthy clients looking to relocate to countries that offer favorable tax and regulatory environments for crypto holders. To cater to this new wave of crypto nomads, Henley has created a “Crypto Adoption Index” to rank countries based on their crypto regulations.
Countries like Singapore, with a supportive banking system and comprehensive crypto regulations, rank high on the Crypto Adoption Index. Hong Kong, the United Arab Emirates, and the U.S. follow closely behind. As more wealthy individuals migrate to these jurisdictions, we can expect to see a shift in where the rich live and work, driven by the opportunities presented by the growing acceptance of crypto assets.
The rise of crypto millionaires and billionaires marks a significant shift in the traditional wealth landscape. The influence of bitcoin ETFs, institutional participation, and changing regulatory environments are reshaping the way wealth is created and distributed in the crypto space. As more individuals seek out opportunities in the world of cryptocurrencies, we can expect to see a continued growth in crypto wealth and a transformation in where the wealthy choose to call home.