In this photo illustration, a visual representation of the digital cryptocurrency Bitcoin is displayed on March 5, 2024 in Paris, France.
Chessknot | Getty Images News | Getty Images
The number of crypto millionaires in the world has surged by 95% in the past year as prices of bitcoin exchange-traded funds and other crypto assets have risen, according to a new report.
According to a report by New World Wealth and Henley & Partners, there are now 172,300 individuals worldwide who hold more than $1 million in crypto assets, up from 88,200 last year. The number of pure Bitcoin millionaires has more than doubled to 85,400.
The ranks of crypto-rich people are steadily climbing the wealth ladder: There are now 325 crypto-centimillionaires (people with crypto holdings of over $100 million) and 28 crypto-billionaires, according to the report.
The surge reflects the rapid growth of bitcoin ETFs, which now have more than $50 billion in assets and have sparked a wave of institutional participation since their launch in January.
Bitcoin’s price has risen 45% this year to about 64,000. As other coins have risen in value, the cryptocurrency’s market capitalization has grown to $2.3 trillion from $1.2 trillion last summer, according to Henley & Partners.
Of the six new crypto millionaires born in the past year, five attribute their newfound wealth to Bitcoin, “highlighting Bitcoin’s dominance in attracting large, long-term investors,” said Andrew Amoils, head of research at New World Wealth.
According to Forbes magazine, the richest crypto billionaire is Changpeng Chao, founder and former CEO of crypto exchange Binance, with an estimated net worth of $33 billion. Chao pleaded guilty to U.S. money laundering charges in November and agreed to pay a $50 million fine. His net worth has increased by more than $10.5 billion in the past year.
Binance founder Changpeng Zhao attended the Viva Technology conference dedicated to innovation and startups, held at the Porte de Versailles exhibition center in Paris on June 16, 2022.
Benoit Tessier | Reuters
Second place goes to Brian Armstrong, co-founder Coinbase, According to Forbes, his net worth is estimated at $11 billion. Following him on the list are Tether’s Chief Financial Officer Giancarlo Devassini and MicroStrategy co-founder Michael Saylor.
Indeed, many crypto assets are still below their 2021 highs, with Bitcoin’s recent rally essentially marking a three-year round trip to that level. The crypto market capitalization hit $3 trillion in November 2021.
However, cryptocurrency acceptance is growing among major asset management companies. Black Rock and Faithfulness, With the cooperation of Morgan Stanley With 15,000 brokers, this Salesforce could foster further wealth creation among large cryptocurrency holders.
Cryptocurrencies will not only increase the number of millionaires and billionaires, but will also change where the wealthy live and work. According to Henley & Partners, many of the new crypto-rich are considering relocating to tax- and crypto-friendly jurisdictions.
“We have seen a significant increase in crypto-rich clients seeking alternative residency and citizenship options,” said Dominic Borek, head of private clients at Henley & Partners.
To better advise new crypto nomads, Henry created the “Crypto Adoption Index,” ranking countries based on their tax and regulatory approach to crypto. According to Henry, Singapore ranks first on the index due to its “supportive banking system, significant investment, comprehensive regulation such as the Payment Services Act, regulatory sandbox, and compliance with global standards.”
Coming in second is Hong Kong, followed by the United Arab Emirates and the United States. In the United States, the report states that 15% of the population owns cryptocurrencies. “This is supported by a strong infrastructure, including a high density of crypto ATMs, crypto-friendly banks, and a growing number of businesses accepting cryptocurrencies,” the report states.
