he number of people with significant wealth in cryptocurrencies has nearly doubled in the past year, driven by the increasing popularity of Bitcoin and other digital assets. According to a new report by New World Wealth and Henley & Partners, the global population of crypto millionaires has risen by an astounding 95% over the last year.
Rapid Growth in Crypto Millionaires
The report highlights that there are now 172,300 individuals worldwide who hold more than $1 million in cryptocurrency. This is a significant jump from the 88,200 crypto millionaires recorded in 2023. The data shows that the number of Bitcoin millionaires has more than doubled as well, reaching 85,400. This increase is largely attributed to the launch of spot Bitcoin exchange-traded funds (ETFs), which have garnered considerable attention and investment, further driving the growth of the cryptocurrency market.
In addition to the rise in millionaires, the report also notes a substantial increase in ultra-wealthy crypto investors. Currently, 325 individuals hold $100 million or more in cryptocurrency, earning them the title of crypto centimillionaires. Furthermore, there are now 28 crypto billionaires, a remarkable number considering the relatively recent emergence of cryptocurrencies as a mainstream asset class. The surge in crypto wealth is largely driven by the success of spot Bitcoin ETFs, which have attracted over $50 billion in assets since their launch in January, encouraging more institutional investors to enter the market.
Impact on Global Wealth Distribution
This explosion of wealth in the crypto sector is not only reshaping individual fortunes but also influencing global wealth distribution. According to Andrew Amoils, head of research at New World Wealth, five out of the six new crypto billionaires created in 2023 have amassed their fortunes through Bitcoin. This underscores Bitcoin’s significant role in attracting long-term investors who are willing to hold large amounts of the cryptocurrency.
The report also highlights that the rise in crypto wealth is prompting many newly wealthy individuals to consider relocating to countries with favorable tax and regulatory environments. Henley & Partners have observed a growing trend of crypto-rich individuals seeking alternative residency and citizenship options in jurisdictions that are both tax-friendly and supportive of cryptocurrencies. To assist in this relocation, Henley & Partners developed an index to rank countries based on their tax policies and regulatory frameworks.
Singapore tops the list, thanks to its robust banking system, strong investment climate, and comprehensive regulations like the Payment Services Act, which align with global standards. Following closely behind are Hong Kong, the United Arab Emirates, and the United States, all of which have become attractive destinations for those looking to capitalize on their crypto wealth while enjoying favorable regulatory environments.