The number of individuals worldwide holding more than $1 million in crypto assets has skyrocketed, increasing by 95% over the past year, according to a recent report by New World Wealth and Henley & Partners. This surge in the population of crypto millionaires can be attributed to the remarkable growth of bitcoin exchange-traded funds and other crypto assets. The report reveals that there are now 172,300 crypto millionaires globally, up from 88,200 just a year ago. The exponential rise in the number of pure bitcoin millionaires, which has more than doubled to 85,400, further highlights the increasing wealth accumulation within the crypto space.
Not only have the ranks of crypto millionaires grown, but there has also been a significant rise in the number of crypto centimillionaires and billionaires. The report indicates that there are now 325 crypto centimillionaires with holdings of $100 million or more, as well as 28 crypto billionaires. This phenomenon underscores the widening wealth gap within the crypto community and illustrates the increasing concentration of wealth among a select group of individuals.
The remarkable growth of bitcoin ETFs, which have amassed over $50 billion in assets since their launch in January, has played a crucial role in fueling the surge in crypto wealth. Institutional participation in the crypto market has also been a significant driver of this trend, with large asset managers like BlackRock and Fidelity embracing crypto assets. The price of bitcoin has surged by 45% this year, reaching approximately $64,000, while the overall market cap of crypto assets has soared to $2.3 trillion, up from $1.2 trillion last summer.
Bitcoin continues to maintain its dominant position in attracting long-term investors who seek to accumulate large holdings. Of the six new crypto billionaires created in the past year, five have amassed their wealth primarily through bitcoin investments. This underscores the enduring allure of bitcoin as a lucrative investment asset and highlights its pivotal role in driving wealth creation within the crypto space.
The growing acceptance of crypto assets among major asset managers and financial institutions is poised to revolutionize where the wealthy choose to reside and conduct business. Many of the newly minted crypto millionaires and billionaires are actively considering relocating to tax-friendly and crypto-friendly jurisdictions. Countries like Singapore, Hong Kong, the United Arab Emirates, and the U.S. are emerging as preferred destinations for crypto elites seeking regulatory certainty and a conducive environment for their digital wealth.
As the crypto market continues to evolve and mature, the creation of more millionaires and billionaires within the industry seems inevitable. The increasing mainstream acceptance of crypto assets, coupled with the growing institutional interest in the space, is anticipated to drive further wealth accumulation among large crypto holders. The migration of the crypto wealthy to jurisdictions that offer favorable tax and regulatory frameworks is expected to reshape the global landscape of wealth distribution and economic power.
Leave a Reply