The number of crypto millionaires in the world has skyrocketed by an impressive 95% over the past year, as reported by New World Wealth and Henley & Partners. Currently, there are 172,300 individuals globally who hold more than $1 million in crypto assets, a significant increase from 88,200 millionaires the previous year. Moreover, the number of pure bitcoin millionaires has more than doubled, standing at 85,400. Additionally, there are now 325 crypto centimillionaires and 28 crypto billionaires, marking a substantial growth in the ranks of the crypto affluent.
The surge in crypto wealth can be attributed to the rapid growth of bitcoin exchange-traded funds (ETFs), which have amassed over $50 billion in assets since their launch in January. This surge in ETFs has sparked a wave of institutional participation in the cryptocurrency market. The price of bitcoin has surged by 45% this year, reaching approximately $64,000. Furthermore, the overall market cap of crypto assets has climbed to $2.3 trillion, up from $1.2 trillion last summer, showcasing the increasing value and acceptance of cryptocurrencies.
Of the six new crypto billionaires minted in the past year, five have amassed their wealth through bitcoin investments, underlining bitcoin’s dominant position in attracting long-term investors with substantial holdings. Notably, Changpeng Zhao, the founder of Binance, maintains his position as the richest crypto billionaire for the third consecutive year, with an estimated net worth of $33 billion.
Despite fluctuations in the value of many crypto assets, the growing acceptance of cryptocurrencies among major asset management firms such as BlackRock and Fidelity, alongside support from institutional brokers like Morgan Stanley, is poised to fuel further wealth creation among large crypto holders. This trend suggests that crypto assets have the potential to not only create more millionaires and billionaires but also influence where the wealthy choose to reside and conduct business.
Global Migration of Crypto Wealth
As more individuals acquire substantial crypto wealth, there is a noticeable interest in relocating to tax-friendly and crypto-friendly jurisdictions. Many of the newly wealthy individuals are exploring opportunities in countries that offer a conducive regulatory environment for cryptocurrencies. Singapore, with its supportive banking system and comprehensive regulations, tops the “Crypto Adoption Index” created by Henley, followed by Hong Kong, the United Arab Emirates, and the United States. This migration of crypto wealth has the potential to reshape the landscape of where the rich choose to live and work.
The exponential growth of crypto millionaires and billionaires worldwide reflects the increasing value and mainstream acceptance of cryptocurrencies. As institutional participation in the crypto market rises and regulatory frameworks evolve to accommodate digital assets, the wealth created through cryptocurrencies is expected to continue growing and influencing global economic landscapes.
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