The world of cryptocurrency has seen a dramatic increase in the population of crypto millionaires over the past year. A new report from New World Wealth and Henley & Partners revealed that the number of individuals holding more than $1 million in crypto assets has soared by 95%, reaching a total of 172,300 worldwide. This represents a significant growth from the 88,200 crypto millionaires reported the previous year.
The report also highlighted the emergence of crypto centimillionaires, those with $100 million or more in crypto holdings, totaling 325 individuals. Additionally, there are now 28 crypto billionaires in the world, showcasing the wealth accumulation within the cryptocurrency space. The surge in crypto wealth can be attributed to the rapid growth of bitcoin exchange-traded funds (ETFs) and other crypto assets, which have collectively surpassed $50 billion in assets since their inception in January.
Bitcoin remains the dominant player in attracting long-term investors who accumulate large holdings in crypto assets. Of the six new crypto billionaires created over the past year, five have attributed their wealth to bitcoin. This underscores the significant position that bitcoin holds in the cryptocurrency market, with its price jumping by 45% this year to approximately $64,000.
The increase in institutional participation in the cryptocurrency market has contributed to the growth of crypto wealth. Asset managers such as BlackRock and Fidelity, along with the salesforce of Morgan Stanley, have shown growing acceptance of crypto assets. This trend is likely to fuel further wealth creation among large crypto holders, potentially leading to an increase in the number of crypto millionaires and billionaires.
The rise of crypto wealth has also led to a shift in where the rich choose to live and work. Many crypto millionaires and billionaires are seeking to relocate to tax-friendly and crypto-friendly jurisdictions. Countries like Singapore, Hong Kong, the United Arab Emirates, and the U.S. are attractive destinations for these individuals, offering supportive banking systems, comprehensive regulations, and alignment with global standards.
The growing population of crypto millionaires and billionaires highlights the increasing importance of cryptocurrency in wealth creation. As the market continues to evolve and gain acceptance among institutional investors, we can expect to see a further rise in the number of individuals accumulating significant wealth through crypto assets. The influence of cryptocurrency on residency and citizenship choices also demonstrates the shifting landscape of wealth distribution in the digital age.