The Rise of Crypto Millionaires: Population Soars 95% as Bitcoin ETFs Gain Traction

The world has seen a significant increase in the number of crypto millionaires over the past year, with a 95% surge in their population, according to a report by New World Wealth and Henley & Partners. The number of individuals holding more than $1 million in crypto assets has risen from 88,200 to 172,300. In particular, the number of pure bitcoin millionaires has more than doubled to 85,400. This growth in crypto wealth is attributed to the rise of bitcoin exchange-traded funds (ETFs) and other crypto assets.

The popularity of bitcoin ETFs has played a significant role in the surge of crypto millionaires. These ETFs have accumulated over $50 billion in assets since their launch in January, leading to increased institutional participation in the crypto market. As a result, the price of bitcoin has risen by 45% this year, reaching approximately $64,000. The overall market cap of crypto assets has also increased to $2.3 trillion, up from $1.2 trillion last summer, as the value of other coins has also appreciated.

Interestingly, the report highlights the dominance of bitcoin in attracting long-term investors who hold large amounts of crypto assets. Out of the six new crypto billionaires created in the past year, five have accumulated their wealth through bitcoin investments. This underscores bitcoin’s position as the leading cryptocurrency in terms of wealth generation.

Forbes has identified Changpeng Zhao, the founder and former CEO of Binance, as the richest crypto billionaire for the third consecutive year. Zhao’s estimated net worth is $33 billion. However, it is worth noting that he recently pled guilty to U.S. money laundering charges and agreed to pay a $50 million fine. Despite this legal issue, Zhao’s wealth has increased by over $10.5 billion in the past year.

Brian Armstrong, the co-founder of Coinbase, is ranked second on Forbes’ list of crypto billionaires, with an estimated net worth of $11 billion. He is followed by Giancarlo Devasini, the chief financial officer of Tether, and Michael Saylor, the co-founder of MicroStrategy.

Although many crypto assets are still below their 2021 highs, the growing acceptance of crypto assets by major asset managers such as BlackRock and Fidelity, along with the support of Morgan Stanley’s vast salesforce, could lead to further wealth creation among large crypto holders. This increased adoption of crypto assets is expected to not only create more millionaires and billionaires but also impact where the wealthy choose to live and work.

According to Henley & Partners, many newly wealthy individuals in the crypto space are looking to move to tax-friendly and crypto-friendly jurisdictions. Henley has created a “Crypto Adoption Index” to rank countries based on their tax and regulatory approach to crypto. Singapore tops the index due to its supportive banking system, comprehensive regulations, and alignment with global standards. Hong Kong, the United Arab Emirates, and the United States follow closely behind. The U.S. has a 15% cryptocurrency ownership rate among its population and boasts strong infrastructure to support crypto transactions.

In conclusion, the rise of crypto millionaires reflects the rapid growth of bitcoin ETFs and other crypto assets. Bitcoin’s dominant position as a wealth generator and the increasing acceptance of crypto assets by major institutions contribute to this trend. The wealthy in the crypto space are seeking tax and regulatory-friendly jurisdictions to reside in, and Singapore currently leads the way in terms of crypto adoption. As the crypto market continues to evolve, more millionaires and billionaires are expected to emerge, shaping the global landscape of wealth and investment.