In this illustration, a visual representation of the cryptocurrency, Bitcoin, is shown in Paris, France, on March 5, 2024.
Chestnut | Getty Images News | Getty Images
The number of cryptocurrency millionaires in the world has surged 95% over the past year as exchange-traded funds for bitcoin and other crypto assets surge, according to a new report.
There are now 172,300 individuals worldwide who own 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 bitcoin millionaires has also doubled to 85,400.
The ranks of cryptocurrency millionaires have grown on the wealth ladder. There are now 325 crypto millionaires — those with crypto holdings worth $100 million or more — and 28 crypto billionaires, according to the report.
The surge reflects the rapid growth of bitcoin exchange-traded funds, which now hold more than $50 billion in assets since their launch in January, sparking a wave of institutional participation.
Bitcoin has risen 45% this year to about 64,000 bitcoins. Along with other currencies, the market cap of crypto assets has risen to $2.3 trillion, according to Henley & Partners, up from $1.2 trillion last summer.
Of the six new crypto billionaires who emerged over the past year, five can attribute their newfound wealth to Bitcoin, “underscoring its dominant position when it comes to attracting long-term investors who buy large stakes,” according to Andrew Amoils, head of research at New World Wealth.
According to Forbes, the richest crypto billionaire — for the third year in a row — is Changpeng Zhao, the founder and former CEO of cryptocurrency exchange Binance, whose net worth is estimated at $33 billion. Zhao pleaded guilty to U.S. money laundering charges in November and agreed to pay a $50 million fine. His fortune has increased by more than $10.5 billion over the past year.
Changpeng Zhao, founder of Binance, 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, His net worth is estimated at $11 billion, according to Forbes. He is followed on the list by Giancarlo Devasini, the CFO of Tether, and Michael Saylor, the co-founder of MicroStrategy.
Many crypto assets are certainly still below their 2021 highs, and Bitcoin’s recent rally represents a three-year round trip to those levels. Crypto assets reached a market cap of $3 trillion in November 2021.
However, the growing acceptance of crypto assets among major asset managers such as Black Rock and Sincerity With the help of Morgan Stanley A sales force of 15,000 brokers could lead to further wealth creation among large cryptocurrency holders.
Not only will cryptocurrencies create more millionaires and billionaires, they will also change where the wealthy live and work. According to Henley & Partners, many of the new crypto rich are looking to move to tax- and crypto-friendly jurisdictions.
“We have seen a significant increase in the number of wealthy clients looking for alternative residency and citizenship options,” said Dominic Foley, Head of Private Clients at Henley & Partners.
To better advise new crypto pioneers, Henley has created the “Crypto Adoption Index,” which ranks countries according to their tax and regulatory approach to cryptocurrencies. Singapore ranks first on the index, thanks to its “supportive banking system, significant investment, comprehensive regulations such as the Payment Services Act, regulatory funds, and alignment with global standards,” according to Henley.
Hong Kong came in second, followed by the UAE and the US. In the US, according to the report, 15% of the population owns cryptocurrencies. “This is supported by a robust infrastructure, with a high density of crypto ATMs, crypto-friendly banks, and a growing number of businesses that accept cryptocurrencies,” the report said.
