The population of crypto millionaires has seen a staggering 95% increase over the past year, with a total of 172,300 individuals now holding more than $1 million in crypto assets. This surge in wealth can be attributed to the rise of bitcoin exchange-traded funds and other crypto assets, which have experienced significant growth in recent months. The number of pure bitcoin millionaires has more than doubled, reaching 85,400 individuals.
The crypto rich have not only increased in numbers but have also climbed the wealth ladder. There are now 325 crypto centimillionaires, with more than $100 million in crypto holdings, and 28 crypto billionaires. This upward trend is a reflection of the rapid growth of bitcoin ETFs, which have accumulated over $50 billion in assets since their launch in January. The price of bitcoin has also experienced a 45% jump this year, reaching around $64,000.
The growth of the crypto market can be seen in the increased market cap of crypto assets, which now stands at $2.3 trillion, up from $1.2 trillion last summer. The surge in bitcoin’s price and the rise of other coins have attracted institutional investors, leading to the creation of six new crypto billionaires over the past year. The dominance of bitcoin is evident, with five out of the six new billionaires attributing their wealth to the popular cryptocurrency.
Forbes reports that the richest crypto billionaire for the third consecutive year is Changpeng Zhao, the founder of Binance, with an estimated net worth of $33 billion. Following him is Brian Armstrong, the co-founder of Coinbase, valued at $11 billion. Other notable figures in the list include Giancarlo Devasini, the CFO of Tether, and Michael Saylor, the co-founder of MicroStrategy. The wealth accumulation of these individuals highlights the significant impact of crypto on their financial status.
Despite some crypto assets still trading below their 2021 highs, the growing acceptance of crypto assets among major asset managers like BlackRock and Fidelity suggests a positive outlook for further wealth creation among large crypto holders. The recent rise in bitcoin’s value marks a return to its previous highs, showcasing the resilience and potential of the crypto market.
The increasing number of crypto millionaires and billionaires is expected to reshape traditional concepts of wealth distribution. Many of the newly rich individuals are considering relocating to tax-friendly jurisdictions that are supportive of cryptocurrencies. Countries like Singapore, Hong Kong, the United Arab Emirates, and the U.S. are becoming popular choices for these crypto nomads, with Singapore leading the pack due to its favorable regulatory environment and alignment with global standards.
The rise of crypto wealth in the world is a testament to the growing influence of cryptocurrencies on the global economy. As more individuals accumulate wealth through crypto assets, the landscape of traditional wealth distribution is bound to undergo significant changes. With institutional participation on the rise and favorable regulatory environments in key countries, the future looks bright for the expansion of crypto wealth creation.