The number of crypto billionaires worldwide has nearly doubled in the last year, thanks to the rise of Bitcoin ETFs and other digital assets. According to a new analysis by New World Wealth and Henley & Partners, the number of people with more than $1 million in Bitcoin holdings has risen to 172,300, up significantly from 88,200 the previous year. Notably, the number of Bitcoin millionaires has more than doubled to 85,400.
The Expanding Crypto Wealth Pyramid
The quick increase in crypto wealth is not confined to millionaires. According to the research, the number of centi-millionaires—those with $100 million or more in cryptocurrency holdings—has increased significantly, reaching 325 individuals. Furthermore, the elite club of crypto millionaires has expanded to 28 members, highlighting cryptocurrencies’ transformational impact on global wealth distribution.
The rise in crypto wealth is directly related to the thriving market for Bitcoin ETFs, which have gathered more than $50 billion in assets since their launch earlier this year. This spike in institutional engagement has played a critical role in increasing the value of cryptocurrency assets.
Bitcoin Leads the Charge
Bitcoin is the dominant force in the cryptocurrency market, with its price up 45% this year to almost $64,000. As a result, the entire market capitalisation of cryptocurrency assets has risen to $2.3 trillion, almost doubling from $1.2 trillion last summer.
Five of the six new crypto millionaires produced in the last year owe their fortunes to Bitcoin, demonstrating the cryptocurrency’s persistent attraction to long-term investors. Andrew Amoils, head of research at New World Wealth, emphasised Bitcoin’s importance in attracting large-scale investments.
Top Crypto Billionaires: Leading the Pack
For the third year in a row, Changpeng Zhao, the founder and former CEO of Binance, leads the list of crypto billionaires with an estimated net worth of $33 billion. Despite recent legal hurdles, including a guilty plea to US money laundering charges and a $50 million fine, Zhao’s net worth has increased by more than $10.5 billion in the last year.
Following Zhao is Brian Armstrong, Coinbase’s co-founder, worth an estimated $11 billion. Other significant players include Giancarlo Devasini, Tether’s CFO, and Michael Saylor, MicroStrategy’s co-founder.
The Future of Crypto Wealth: Global Shift
While many cryptocurrency assets have yet to recover from their 2021 highs, the increased acceptance of digital currencies by big asset managers such as BlackRock and Fidelity is expected to generate additional wealth creation in the sector. The involvement of Morgan Stanley’s huge broking network also indicates a broader institutional acceptance of cryptocurrencies.
The growing wealth in the cryptocurrency business is expected to influence where the wealthy live and work. Henley & Partners believes that the crypto affluent are increasingly interested in shifting to tax-friendly and crypto-friendly nations. Dominic Volek, head of private clients at Henley & Partners, reported a considerable increase in crypto-affluent clients looking for alternate residency and citizenship possibilities.
Global Crypto Adoption Index: Where to Live and Invest
To better educate newly rich crypto nomads, Henley & Partners has launched the “Crypto Adoption Index,” which ranks nations based on their tax and regulatory policies regarding digital assets. Singapore leads the list and is lauded for its supporting financial system, thorough rules such as the Payment Services Act, and compliance with international standards.
Hong Kong, the United Arab Emirates, and the United States rank high on the index. In the United States, 15% of the population currently possesses cryptocurrency, thanks to a solid infrastructure that includes a high density of crypto ATMs, crypto-friendly institutions, and an expanding number of companies that take digital currency.
A New Era in Wealth Creation
The tremendous surge in cryptocurrency millionaires and billionaires indicates the growing importance of digital assets in global wealth creation. As cryptocurrencies become more widely accepted in mainstream finance, the prospects for wealth generation in this industry are anticipated to grow. Understanding the growing environment of crypto assets is critical for investors and entrepreneurs as they navigate this new era of wealth creation.
