Crypto Wealth Surge: $2.3T Market, 95% More Millionaires
The global cryptocurrency market has witnessed a significant surge, with the number of crypto millionaires rising by 95% over the past year, according to a recent report. The increase is largely attributed to the advent of spot Bitcoin Exchange-Traded Funds (ETFs) and other cryptocurrencies.
Henley & Partners, a prominent wealth and investment migration firm, highlighted these findings in their latest Crypto Wealth Report 2024. The report reveals that 172,300 individuals now hold over $1 million in crypto assets, marking a substantial rise from the previous year. Notably, the number of Bitcoin millionaires has grown by 111%, reaching 85,400.
The overall market capitalization of cryptocurrencies has reached $2.3 trillion, reflecting an 89% increase from the $1.2 trillion recorded in the firm’s inaugural report last year. Additionally, the upper echelons of crypto wealth have expanded, with a 79% rise in the number of centi-millionaires (those holding $100 million or more in crypto) to 325. The exclusive group of crypto billionaires has also seen a 27% growth, totaling 28 worldwide.
ETFs as a Key Driver
Dominic Volek, Group Head of Private Clients at Henley & Partners, attributes the notable rise in crypto millionaires to the introduction of Crypto ETFs in major financial markets. These ETFs have attracted significant institutional investments, leading to a rapid increase in wealth within the crypto space. The report further suggests that the approval of spot Bitcoin and Ethereum ETFs has played a pivotal role in this wealth surge, and the potential introduction of a Solana ETF could continue this trend.
Growing Demand for Crypto-Friendly Jurisdictions
As the number of crypto millionaires grows, so does the demand for crypto-friendly countries. Investors are increasingly seeking nations with clear regulations and favorable crypto laws to safeguard and grow their assets. According to Henley & Partners, Singapore is currently the top destination for these investors, followed closely by Hong Kong, the UAE, and the United States.
