Bitcoin rally helps create 84,000 new crypto billionaires in a year

The world's cryptocurrency millionaire population has increased by 95% over the past year as exchange-traded funds for bitcoin and other crypto assets surged, according to a new report.

According to a report by New World Wealth and Henley & Partners, there are now 172,300 people worldwide who own more than $1 million worth of crypto assets, up from 88,200 last year. The number of millionaires who own only bitcoins more than doubled to 85,400.

The ranks of the crypto-rich have grown to the top of the wealth ladder. There are now 325 crypto-centimillionaires (those with $100 million or more in cryptocurrency holdings) and 28 crypto-billionaires, according to the report.

The surge reflects the rapid growth of bitcoin ETFs, which now hold more than $50 billion in assets since their launch in January and have sparked a wave of institutional participation.

The price of bitcoin has risen 45% this year to about $64,000. As other currencies have risen in value, the market capitalization of cryptoassets has risen to $2.3 trillion, according to Henley & Partners, up from $1.2 trillion last summer.

Of the six new cryptocurrency billionaires created over the past year, five can attribute their newfound wealth to bitcoin, “underscoring its dominant position when it comes to attracting long-term investors who buy large stakes,” according to Andrew Amoils, head of research at New World Wealth.

According to Forbes, the richest cryptocurrency billionaire (for the third year in a row) is Changpeng Zhao, founder and former CEO of cryptocurrency exchange Binance, whose fortune is estimated at $33 billion. Zhao pleaded guilty to money laundering charges in the United States in November and agreed to pay a $50 million fine. His wealth has soared by more than $10.5 billion over the past year.

In second place is Brian Armstrong, co-founder of Base currency, According to Forbes, his value is estimated at $11 billion. He is followed by Giancarlo Devasini, Tether's chief financial officer, and Michael Saylor, co-founder of MicroStrategy, according to the list.

It’s true that many cryptoassets are still below their 2021 highs, and Bitcoin’s recent surge essentially marks a three-year round trip to those levels. Cryptoassets reached a market cap of $3 trillion in November 2021.

However, the growing acceptance of cryptoassets among large asset managers such as Black Rock and Fidelity, with the aid of From Morgan Stanley A sales force of 15,000 brokers could drive greater wealth creation among large cryptocurrency holders.

Cryptocurrencies will not only create more millionaires and billionaires, but will also change where the rich live and work. According to Henley & Partners, many of the new crypto rich are looking to move to tax-friendly and cryptocurrency-friendly jurisdictions.

“We have seen a significant increase in the number of crypto-rich clients seeking alternative residency and citizenship options,” said Dominic Volek, head of private clients at Henley & Partners.

To better advise new crypto nomads, Henley created a “Cryptocurrency Adoption Index,” which ranks countries based on their tax and regulatory approach to cryptocurrencies. Singapore ranks first on the index, due to its “supportive banking system, significant investment, comprehensive regulations such as the Payment Services Act, restricted regulatory environments, and alignment with global standards,” according to Henley.

Hong Kong is in second place, followed by the United Arab Emirates and the United States. In the United States, the report says, 15% of the population owns cryptocurrencies. “This is supported by a strong infrastructure, with a high density of cryptocurrency ATMs, banks that accept cryptocurrencies, and an increasing number of businesses that accept cryptocurrencies,” the report notes.