The past year has seen an incredible surge in the population of crypto millionaires worldwide. According to a recent report by New World Wealth and Henley & Partners, the number of individuals holding more than $1 million in crypto assets has skyrocketed by 95%, rising from 88,200 to 172,300. This exponential growth is attributed to the increasing value of bitcoin exchange-traded funds and other crypto assets, which have seen a significant spike in value.
Not only have pure bitcoin millionaires more than doubled to 85,400, but the ranks of the crypto rich have also climbed up the wealth ladder. There are now 325 crypto centimillionaires and 28 crypto billionaires, indicating a widening gap in wealth accumulation within the crypto space. This trend is further fueled by the rapid growth of bitcoin ETFs, which have amassed over $50 billion in assets since their launch in January.
Bitcoin continues to hold a dominant position in attracting long-term investors who accumulate large holdings in the cryptocurrency. Of the six new crypto billionaires created over the past year, five have amassed their wealth primarily through bitcoin investments. This underscores the enduring appeal and value of bitcoin as a store of wealth and investment vehicle for the ultra-rich.
For the third consecutive year, Changpeng Zhao, the founder of Binance, reigns as the richest crypto billionaire with an estimated net worth of $33 billion. Brian Armstrong, the co-founder of Coinbase, follows closely behind with a net worth of $11 billion. Other notable figures in the crypto billionaire list include Giancarlo Devasini, the CFO of Tether, and Michael Saylor, the co-founder of MicroStrategy.
While many crypto assets are still below their 2021 highs, the growing acceptance of cryptocurrencies by major asset managers like BlackRock and Fidelity, along with strategic partnerships with institutions like Morgan Stanley, could lead to further wealth creation among large crypto holders. The evolution of the crypto landscape is poised to create more millionaires and billionaires, reshaping where the wealthy choose to live and work.
As the wealth of crypto holders continues to grow, many are seeking to move to tax-friendly and crypto-friendly jurisdictions. Countries like Singapore, Hong Kong, the United Arab Emirates, and the U.S. are becoming attractive destinations for the newly-minted crypto rich looking for alternative residence and citizenship options. Henley & Partners has even created a “Crypto Adoption Index” to rank countries based on their tax and regulatory approach to cryptocurrencies, with Singapore leading the pack due to its supportive banking system and regulatory environment.
The rise of crypto millionaires and billionaires signifies a wealth explosion within the cryptocurrency space. As institutional adoption grows and regulatory frameworks evolve, the landscape of crypto wealth creation is poised to expand even further, reshaping traditional notions of wealth and prosperity.