The world has seen a staggering 95% increase in the population of crypto millionaires over the past year, with individuals holding more than $1 million in crypto assets soaring to 172,300 from 88,200. The number of pure bitcoin millionaires has more than doubled, reaching 85,400. This significant growth has also led to the emergence of 325 crypto centimillionaires, those with $100 million or more in crypto holdings, and 28 crypto billionaires. The surge in crypto wealth can be attributed to the rapid growth of bitcoin exchange-traded funds, now holding over $50 billion in assets since their launch in January. The price of bitcoin has also surged by 45% this year, reaching around $64,000, leading to an overall increase in the market cap of crypto assets to $2.3 trillion.
The Dominance of Bitcoin in Creating Crypto Billionaires
Out of the six new crypto billionaires created in the past year, five have amassed their wealth primarily through bitcoin investments. This underscores the dominant position of bitcoin in attracting long-term investors who hold large crypto holdings. The richest crypto billionaire, Changpeng Zhao, the founder of Binance, has maintained the top spot for the third consecutive year, with an estimated net worth of $33 billion. Brian Armstrong, the co-founder of Coinbase, follows closely behind with a net worth of $11 billion. Other notable figures include Giancarlo Devasini, the CFO of Tether, and Michael Saylor, the co-founder of MicroStrategy.
The Future of Crypto Wealth Creation
While many crypto assets are still below their 2021 highs, the increasing acceptance of crypto assets by major asset managers such as BlackRock and Fidelity, along with support from Morgan Stanley’s vast network of brokers, could pave the way for further wealth creation among large crypto holders. The migration of the newly wealthy crypto individuals to tax-friendly and crypto-friendly jurisdictions is on the rise, with many seeking alternative residence and citizenship options. Countries like Singapore, with its supportive banking system and comprehensive regulations, have become top destinations for crypto nomads looking to establish their wealth in favorable environments. Hong Kong, the United Arab Emirates, and the U.S. also rank high on the list of attractive locations for crypto investors.
The exponential growth of crypto millionaires and billionaires signifies the beginning of a new era of wealth creation driven by digital assets. The dominance of bitcoin in shaping the fortunes of the crypto elite, coupled with increasing institutional participation, hints at a promising future for the crypto market. As the rich continue to flock to jurisdictions that are more conducive to their newfound wealth, the landscape of global wealth distribution is poised to undergo a significant transformation in the coming years.