The recent surge in the population of crypto millionaires around the world has been astonishing, with a whopping 95% increase in the past year alone. According to a report by New World Wealth and Henley & Partners, there are now 172,300 individuals globally who hold more than $1 million in crypto assets, as opposed to 88,200 individuals last year. This exponential growth has been fueled by the rise of bitcoin exchange-traded funds and other crypto assets, propelling the number of pure bitcoin millionaires to over 85,400. Additionally, there are now 325 crypto centimillionaires and 28 crypto billionaires, indicating a significant rise in wealth creation within the crypto sector.
The surge in the number of crypto millionaires can largely be attributed to the rapid growth of bitcoin ETFs, which have amassed over $50 billion in assets since their launch in January. This influx of institutional participation has driven the price of bitcoin up by 45% this year, reaching approximately $64,000. The market cap of crypto assets has also surged to $2.3 trillion, up from $1.2 trillion the previous summer, showcasing the growing mainstream acceptance and adoption of cryptocurrencies.
The report highlights the creation of six new crypto billionaires over the past year, with five of them accumulating their wealth through bitcoin investments. This underscores bitcoin’s dominant position in attracting long-term investors who acquire significant holdings in the digital asset. Notably, the richest crypto billionaire, Changpeng Zhao, founder of Binance, boasts an estimated net worth of $33 billion, followed by Brian Armstrong, co-founder of Coinbase, with a net worth of $11 billion. The growing fortunes of these individuals signify the immense wealth generation potential within the crypto space.
Despite fluctuations in crypto asset prices, the growing acceptance of cryptocurrencies by major asset managers like BlackRock and Fidelity is expected to further drive wealth creation among large crypto holders. This trend is likely to reshape the geographical distribution of wealth, as many newly affluent crypto investors are seeking to relocate to tax-friendly and crypto-friendly jurisdictions. Countries like Singapore, Hong Kong, the United Arab Emirates, and the United States are emerging as preferred destinations for crypto nomads due to their supportive regulatory environments and investment opportunities.
In essence, the rise of crypto millionaires and billionaires signifies a fundamental transformation in wealth creation and distribution. As the crypto market continues to evolve and attract more institutional investors, the potential for further wealth generation within the sector remains significant. Moreover, the migration of crypto investors to favorable jurisdictions underscores the global impact of cryptocurrencies on traditional notions of wealth management and mobility.