According to a recent research, as bitcoin ETFs and other crypto assets surged over the previous year, the number of crypto millionaires worldwide increased by 95%.
A study by New World Wealth and Henley & Partners states that the number of people with over $1 million in cryptocurrency assets globally has increased to 172,300 from 88,200 in the previous year. To 85,400, the count of pure bitcoin millionaires more than doubled.
The wealthiest people in crypto have risen to the top of the wealth distribution chart. As per the survey, there are currently 28 crypto billionaires and 325 crypto centi-millionaires, which are individuals who own cryptocurrency worth at least $100 million.
The increase is a reflection of the quick rise of bitcoin exchange-traded funds (ETFs), which have attracted institutional interest and amassed assets of over $50 billion since their January introduction.
With a 45% increase this year, the price of bitcoin is now over $64,000. The market capitalization of cryptocurrency assets has grown from $1.2 trillion last summer to $2.3 trillion, according to Henley, while other coins’ values have risen.
According to Andrew Amoils, head of research at New World Wealth, of the six new cryptocurrency billionaires who have emerged in the last year, five of them can credit bitcoin for their increased wealth, “underscoring its dominant position when it comes to attracting long-term investors who buy large holdings.”
Changpeng Zhao, the founder and former CEO of the cryptocurrency exchange Binance, is the richest crypto billionaire (for the third year in a row), with an estimated net worth of $33 billion. In November, Zhao admitted to the allegations of money laundering in the United States and agreed to pay a fine of $50 million. In the last year, his wealth has increased by almost $10.5 billion.
Forbes estimates that Brian Armstrong, a co-founder of Coinbase, is worth approximately $11 billion, placing him in second place. The list places him below MicroStrategy creator Michael Saylor and Tether’s chief financial officer Giancarlo Devasini.
Granted, a lot of cryptocurrency assets are still below their peak values from 2021; nonetheless, the latest surge in bitcoin represents a three-year return to those levels. In November 2021, the market value of cryptocurrency assets reached $3 trillion.
Large crypto holders may create much more wealth, though, since major asset managers like Fidelity and BlackRock, with support from Morgan Stanley’s 15,000 broker sales force, are beginning to accept cryptocurrency assets.
In addition to making more people richer, cryptocurrency will alter where the wealthy live and work. Many of the newly wealthy in cryptocurrency, according to Henley, are seeking to relocate to tax-friendly and cryptocurrency-friendly jurisdictions.
Dominic Volek, head of private clients at Henley & Partners, stated, “We’ve seen a significant uptick in crypto-wealthy clients seeking alternative residence and citizenship options.”
Henley developed a “Crypto Adoption Index,” which ranks nations based on how they handle taxes and regulations related to cryptocurrencies, in an effort to provide more intelligent guidance to the recent wave of digital nomads. According to Henley, the reasons Singapore tops the index include its worldwide standards alignment, substantial investment, extensive regulations like the Payment Services Act, regulatory sandboxes, and a friendly banking sector.
After the United States and the United Arab Emirates, Hong Kong came in second. 15 percent of Americans possess cryptocurrency, according to the report: Strong infrastructure, including a high concentration of crypto ATMs, banks that welcome cryptocurrency, and a growing number of establishments that accept cryptocurrency, is what supports this, according to the report.
