Crypto Millionaires Soar 95% in a Year, Bitcoin ETFs and Bitcoin Surge Driving Wealth Growth

A significant surge of crypto millionaires has been reported over the last year, with a staggering 95% increase in the global population of individuals holding over $1 million in crypto assets. This notable growth can be attributed to the rise of bitcoin ETFs and the overall growth of the crypto market. The latest report from New World Wealth and Henley & Partners reveals that the number of crypto millionaires has reached 172,300, a substantial increase from 88,200 just the previous year.

Steep Increase in Bitcoin Millionaires

One of the most striking findings of the report is the more than doubling of pure bitcoin millionaires, with the current count at 85,400. This upward trend in the wealth of crypto investors extends across all levels of wealth, with the emergence of 325 crypto centi-millionaires and 28 crypto billionaires worldwide. The increasing number of high-net-worth individuals entering the crypto space further demonstrates the growing acceptance and adoption of crypto assets.

Influence of Bitcoin ETFs and Market Growth

The report attributes the significant increase in crypto millionaires to the rapid growth of bitcoin ETFs, which have amassed over $50 billion in assets since their launch in January. The launch of bitcoin ETFs has catalyzed a wave of institutional participation, contributing to the surge in crypto wealth. Furthermore, the rise in bitcoin's price by 45% this year, reaching approximately $64,000, has played a pivotal role in increasing the market cap of crypto assets to $2.3 trillion, up from $1.2 trillion last summer.

Impact of Bitcoin's Dominance

The significant growth in the number of crypto billionaires this year can largely be attributed to bitcoin, as noted by Andrew Amoils, head of research for New World Wealth. The allure of bitcoin as a long-term investment for individuals looking to make substantial holdings is evident through the emergence of five new crypto billionaires who owe their wealth to bitcoin. The report further highlights the prominence of bitcoin in attracting institutional investors, underscoring its dominant position in the crypto market.

Wealth among Crypto Giants

The report also sheds light on the wealth distribution among crypto tycoons. According to Forks, Changpeng Zhao, the founder and former CEO of Binance, continues to hold the title of the richest crypto billionaire, with an estimated net worth of $33 billion. Following him is Brian Armstrong, co-founder of Coinbase, with a net worth of $11 billion. The crypto industry is also represented by Giancarlo Devasini, the chief financial officer of Tether, and Michael Saylor, co-founder of MicroStrategy.

Long-Term Trends

Despite the remarkable growth in the number of crypto millionaires, it is important to note that many crypto assets are still below their all-time highs in 2021. Bitcoin's recent surge signifies a three-year cycle back to its previous peak, with crypto assets reaching a market capitalization of $3 trillion in November 2021. Nonetheless, the increasing acceptance of crypto by major asset managers like BlackRock and Fidelity , along with the facilitation of Morgan Stanley's extensive salesforce, indicates the potential for further wealth creation among significant crypto holders.

Shifting Trends in Wealth and Residence

The rise of crypto millionaires is not only reshaping the financial landscape but also influencing the residential choices of the newly wealthy. Many crypto rich individuals are seeking tax-friendly and crypto-friendly jurisdictions for their residency. This trend has prompted the need for tailored advice for crypto nomads, leading to the creation of a "Crypto Adoption Index" by Henley, which ranks countries based on their tax and regulatory approach to crypto assets. Singapore, Hong Kong, the United Arab Emirates, and the United States have emerged as notable destinations for newly wealthy individuals.