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| Global Surge in Crypto Millionaires Driven by Bitcoin ETFs and Favorable Regulations: A 95% Increase in 2024 |
The global population of crypto millionaires has skyrocketed by 95% over the past year, according to a report by New World Wealth and Henley & Partners. The report highlights the key factors behind this surge, notably the introduction of spot Bitcoin Exchange-Traded Funds (ETFs) and the growing popularity of other cryptocurrencies.
Unprecedented Growth in Crypto Wealth
Henley & Partners revealed that there are now 172,300 individuals worldwide holding over USD 1 million in crypto assets, marking a significant 95% increase compared to the previous year.
The number of Bitcoin millionaires has also surged dramatically, with a 111% increase, bringing the total to 85,400. The total market value of crypto assets has reached USD 2.3 trillion, an 89% increase from the previous year's USD 1.2 trillion.
The Rise of Crypto Centi-Millionaires and Billionaires
The report also noted a substantial increase in the number of high-net-worth individuals within the crypto space. The number of crypto centi-millionaires—those holding USD 100 million or more in crypto assets—has risen by 79% to 325.
Additionally, the exclusive group of crypto billionaires has grown by 27%, bringing the global total to 28.
Impact of ETFs on Crypto Wealth
Dominic Volek, Group Head of Private Clients at Henley & Partners, attributed the rapid increase in crypto millionaires to the introduction of Crypto Exchange-Traded Funds in major financial markets.
The approval of long-awaited spot Bitcoin and Ethereum ETFs has significantly boosted institutional capital inflows, leading to the creation of numerous new millionaires. The potential introduction of a Solana ETF is anticipated to further increase the number of crypto millionaires.
Demand for Crypto-Friendly Countries
The surge in crypto wealth has also made crypto-friendly countries highly sought after by investors looking to safeguard their assets. Countries with clear regulatory frameworks and favorable crypto laws have become top destinations for newly minted crypto millionaires.
Henley & Partners' report ranks Singapore as the leading crypto-friendly country, followed by Hong Kong, the UAE, and the United States.
Key Insights from the Report
Andrew Amoils, Head of Research at New World Wealth, pointed out that five of the six new crypto billionaires created in 2023 made their wealth from Bitcoin.
The anticipation of a potential Solana ETF could further contribute to the growing number of crypto millionaires, positioning Solana as the third major crypto asset with a spot ETF.
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