The world of cryptocurrency has seen a significant surge in wealth over the past year, with the population of crypto millionaires skyrocketing by 95%. According to a report from New World Wealth and Henley & Partners, there are now 172,300 individuals worldwide holding more than $1 million in crypto assets, up from 88,200 the previous year. The number of pure bitcoin millionaires has more than doubled, reaching 85,400.
The growth in the ranks of the crypto rich has extended all the way up the wealth ladder, with 325 crypto centimillionaires (those with $100 million or more in crypto holdings) and 28 crypto billionaires now in existence. This surge 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, sparking a wave of institutional participation.
The price of bitcoin has surged by 45% this year, reaching around $64,000. As the value of other coins has also increased, the market cap of crypto assets has risen to $2.3 trillion, up from $1.2 trillion last summer. Of the six new crypto billionaires created over the past year, five have accumulated their wealth through bitcoin, highlighting its dominant position in attracting long-term investors who acquire large holdings.
According to Forbes, the richest crypto billionaire for the third consecutive year is Changpeng Zhao, the founder and former CEO of Binance, with an estimated net worth of $33 billion. Zhao recently pleaded guilty to U.S. money laundering charges and agreed to pay a $50 million fine. His wealth has surged by over $10.5 billion in the past year.
Following Zhao is Brian Armstrong, the co-founder of Coinbase, with an estimated net worth of $11 billion. Giancarlo Devasini, the chief financial officer of Tether, and Michael Saylor, the co-founder of MicroStrategy, also feature prominently on the list of top crypto billionaires.
Despite some crypto assets still being below their 2021 highs, the growing acceptance of cryptocurrencies among major asset managers like BlackRock and Fidelity, along with the support from Morgan Stanley’s vast network of brokers, could lead to further wealth creation among large crypto holders. This trend is expected to reshape where the wealthy choose to live and work, with many newly rich crypto investors seeking out tax-friendly and crypto-friendly jurisdictions.
Henley & Partners has observed a significant increase in crypto-wealthy clients exploring alternative residence and citizenship options. To assist these new crypto nomads, Henley has developed a “Crypto Adoption Index,” which ranks countries based on their tax and regulatory approach to crypto. Singapore leads the index, followed by Hong Kong, the United Arab Emirates, and the U.S., where 15% of the population owns cryptocurrencies.
In conclusion, the rise of crypto millionaires and billionaires is a testament to the growing influence and acceptance of cryptocurrencies in the financial world. As the industry continues to evolve and mature, it is likely that we will see even more wealth creation and a shift in the traditional landscape of wealth management and investment.
