Crypto Boom: Millionaires Double as Bitcoin ETFs Ignite a Digital Gold Rush

As shown in this picture illustration from March 5, 2024, in Paris, France, Bitcoin is a digital cryptocurrency.

Washington DC: The number of crypto millionaires worldwide has nearly doubled over the past year, reflecting the rapid growth of Bitcoin ETFs and increased interest in digital assets, according to a new report by New World Wealth and Henley & Partners. The report reveals that there are now 172,300 individuals holding over $1 million in crypto assets, a 95% increase from the 88,200 recorded last year. The number of Bitcoin millionaires alone has more than doubled to 85,400, underscoring the digital currency’s growing dominance in the market.

The surge in crypto wealth spans all levels, with 325 individuals now recognized as crypto centi-millionaires — those holding $100 million or more in crypto assets — and 28 crypto billionaires. This rise in wealth is largely attributed to the expansion of Bitcoin ETFs, which have accumulated over $50 billion in assets since their launch in January, driving substantial institutional participation. Bitcoin’s price has increased by 45% this year, reaching approximately $64,000, while the overall market capitalization of crypto assets has soared to $2.3 trillion, up from $1.2 trillion last summer. According to Andrew Amoils, Head of Research at New World Wealth, Bitcoin continues to attract long-term investors, with five of the six new crypto billionaires this year deriving their wealth from the cryptocurrency.

Changpeng Zhao, the founder and former CEO of Binance, remains the world’s wealthiest crypto billionaire for the third consecutive year, with an estimated net worth of $33 billion. Despite facing legal challenges, including a guilty plea to U.S. money laundering charges and a $50 million fine, Zhao’s wealth has surged by more than $10.5 billion over the past year. Following Zhao is Brian Armstrong, co-founder of Coinbase, valued at $11 billion, with Giancarlo Devasini, CFO of Tether, and Michael Saylor, co-founder of MicroStrategy, also ranking among the top.

While many crypto assets are still trading below their 2021 highs, the growing acceptance of digital currencies by major asset managers such as BlackRock and Fidelity, supported by Morgan Stanley’s network of 15,000 brokers, could lead to further wealth creation among large crypto holders. The surge in crypto millionaires is also driving a shift in global mobility, as many of the newly wealthy are relocating to tax-friendly and crypto-friendly jurisdictions. “We’ve seen a significant uptick in crypto-wealthy clients seeking alternative residence and citizenship options,” said Dominic Volek, Head of Private Clients at Henley & Partners.

In response to this trend, Henley & Partners has introduced a “Crypto Adoption Index,” ranking countries based on their tax and regulatory approaches to crypto. Singapore tops the list, praised for its supportive banking system and comprehensive regulations. It is followed by Hong Kong, the United Arab Emirates, and the United States, where 15% of the population reportedly owns cryptocurrencies, bolstered by a robust infrastructure of crypto ATMs, crypto-friendly banks, and increasing business acceptance. The growing number of crypto millionaires and billionaires marks a significant shift in global wealth distribution and investment patterns, highlighting the expanding influence of digital assets in the financial landscape.