Crypto Wealth Explosion Sees Crypto Millionaire Double to 95% in 2024
The cryptocurrency world is witnessing a significant surge in wealth.
A recent report by Henley & Partners, in collaboration with New World Wealth, reveals a staggering 95% increase in the number of individuals holding over $1 million in crypto assets, rising from 88,200 in 2023 to 172,300 today.
đ đ° 88,000 new crypto millionaires emerged this year â Henley and Partners
Their number grew by 95% this year (88,000 people), reaching a total of 172,300.
Additionally, six new crypto billionaires were minted, five of whom hold BTC â there are now 11 people worldwide who own⊠pic.twitter.com/QxhjSaMF1V
â Melfoy work (@MelfoyWork) August 27, 2024
The number of Bitcoin millionaires alone has more than doubled, reaching 85,400âa 111% increase.
The total market value of crypto assets now stands at an impressive $2.3 trillion, marking an 89% rise from last year's $1.2 trillion.
Moreover, the ranks of crypto centi-millionaires (those with $100 million or more in holdings) have expanded by 79% to 325, while the elite group of crypto billionaires has grown by 27% to 28 worldwide.
Dominic Volek, Group Head of Private Clients at Henley & Partners, attributes this rapid wealth accumulation to the influx of institutional capital, spurred by the launch of crypto ETFs in major financial markets.
He noted:
âThe cryptocurrency landscape of 2024 bears little resemblance to its predecessors. Bitcoin's rise to over USD 73,000 in March set a new all-time high, while the long-awaited approval of spot Bitcoin and Ethereum ETFs in the USA unleashed a torrent of institutional capital. Anticipation now builds for potential Solana ETFs joining the Wall Street party. These milestones have seeded a new era of crypto adoption, one where digital assets increasingly cross-pollinate with traditional finance and global mobility.â
The @HenleyPartners Crypto Wealth Report 2024 is out!
There are now 172'300 individuals worldwide holding over USD 1 million in crypto assets â a 95% increase compared to last year â with the number of #Bitcoinmillionaires soaring by 111% to 85'400, according to the report⊠pic.twitter.com/t6roWFF2Z6
â Bitcoin Suisse (@BitcoinSuisseAG) August 27, 2024
Andrew Amoils, Head of Research at New World Wealth, notes that while the millionaire segment saw the most significant growth, the billionaire tier was primarily driven by Bitcoin, with a more modest increase in numbers.
He expressed:
âOf the six new crypto billionaires created over the past year, five came from Bitcoin, underscoring its dominant position when it comes to attracting long-term investors who buy large holdings.â
BTC & ETH ETFs Play a Major Role in Boosting Numbers of Crypto Millionaires
The report highlighted that the approval of Bitcoin and Ethereum exchange-traded funds (ETFs) has triggered a substantial influx of institutional capital.
The United States (US) Securities and Exchange Commission (SEC) played a pivotal role in January 2024 by approving Bitcoin ETFs, effectively bringing Bitcoin into the mainstream financial landscape.
Despite being relatively new, these ETFs have already amassed over $50 billion in assets, significantly boosting both retail and institutional interest in Bitcoin.
This surge in investment has been accompanied by a 142% increase in Bitcoinâs value over the past year, reaching a peak of $73,000 in March.
Following this, the SEC approved Ethereum ETFs, which began trading in late July and have quickly gained popularity.
Both Bitcoin and Ethereum ETFs have become widely embraced since their launches, marking a new era of growth and interest in the cryptocurrency market.
The Landscape of Wealth is Transforming
As the cryptocurrency market evolves, so does the profile of its affluent participants.
Many new crypto millionaires are now seeking to move to tax-friendly jurisdictions.
Henley & Partners has observed a significant uptick in inquiries about alternative residency and citizenship options among their clients.
Henley & Partners has developed a ranking index to assess these countries based on their tax and regulatory frameworks.
Singapore, Hong Kong, and the United Arab Emirates (UAE) have emerged as the top three choices for crypto investors, thanks to their favourable regulatory and tax environments.
Singapore leads the list, praised for its robust banking system, substantial investment, and comprehensive regulations, such as the Payment Services Act.
Hong Kong follows closely, benefiting from its strong economic foundations and investor-friendly tax policies.
The UAE ranks third, offering considerable tax benefits and a rapidly expanding digital economy.
Notably, these jurisdictions do not levy capital gains tax, which is particularly advantageous for crypto investors and high-net-worth individuals.
The US and the UK also feature prominently as destinations for crypto wealth.
Volek notes that the blending of traditional finance with digital currencies is strengthening the connection between investment migration and the cryptocurrency sector.
He pointed out:
âThe crypto millionaires of 2024 are not content with digital riches alone; they seek the freedom of global mobility to match their borderless assets. As nations compete to attract this new wave of digital wealth, we can expect investment migration programs to evolve, catering to the unique needs of the crypto elite. In this digital gold rush, the most successful jurisdictions will be those that can offer a holistic ecosystem for crypto investors â combining favorable regulations, robust infrastructure, and pathways to alternative citizenship or residence.â
With increasing institutional adoption and a growing number of individuals entering the crypto space, the potential for wealth creation is poised for further expansion, heralding a dynamic future for the market.
