The world has witnessed a staggering 95% increase in the population of crypto millionaires over the past year, as reported by New World Wealth and Henley & Partners. The number of individuals holding more than $1 million in crypto assets has now reached 172,300, a significant jump from 88,200 in the previous year. What is even more remarkable is the fact that the number of pure bitcoin millionaires has more than doubled, reaching 85,400. This exponential growth has not only affected individuals with million-dollar crypto portfolios but has also climbed up the wealth ladder, with 325 crypto centimillionaires and 28 crypto billionaires emerging in the market.
The surge in the population of crypto millionaires can be largely attributed to the rapid growth of bitcoin exchange-traded funds (ETFs), which have amassed over $50 billion in assets since their launch in January. This wave of institutional participation has propelled the price of bitcoin to a 45% increase this year, reaching approximately $64,000. As the value of other crypto assets has also surged, the overall market cap of crypto assets has soared to $2.3 trillion, up from $1.2 trillion last summer.
According to a report by New World Wealth, out of the six new crypto billionaires minted in the past year, five have accumulated their wealth predominantly through bitcoin investments. This underscores bitcoin’s dominant position in attracting long-term investors who acquire substantial holdings in the cryptocurrency. Notably, Changpeng Zhao, the founder of Binance, retains the top spot as the richest crypto billionaire for the third consecutive year, with an estimated net worth of $33 billion.
The Impact of Institutional Acceptance on Crypto Wealth
Despite fluctuations in the value of crypto assets, the growing acceptance of cryptocurrencies among major asset managers such as BlackRock and Fidelity, coupled with support from institutions like Morgan Stanley, has the potential to further boost wealth creation among large crypto holders. The market capitalization of crypto assets had reached $3 trillion in November 2021, indicating a promising trajectory for the crypto market.
The Shifting Landscape of Crypto Wealth and Residency
With the rise of crypto millionaires and billionaires, there is a notable trend of affluent individuals seeking to relocate to tax-friendly and crypto-friendly jurisdictions. Many newly minted crypto wealthy individuals are exploring alternative residence and citizenship options in such crypto-friendly havens. Countries like Singapore, Hong Kong, the United Arab Emirates, and the United States are emerging as popular choices for crypto nomads due to their supportive banking systems, regulatory frameworks, and alignment with global standards.
The rapid proliferation of crypto millionaires and billionaires signifies a significant shift in the traditional wealth landscape. The influence of bitcoin ETFs, institutional participation, and evolving regulatory frameworks are reshaping the dynamics of wealth generation in the crypto space. As the crypto market continues to evolve and gain wider acceptance, we can anticipate a surge in the number of wealthy individuals with substantial crypto holdings, along with a corresponding transformation in their living and working preferences.