The number of crypto holders with over $1 million worth of crypto assets in their wallets surged by 95% year to date according to a report done by New World Wealth and Henley and Partners.
The Crypto Wealth Report 2024 compiled by Henley and Partners an international wealth and investment migration specialist outlined the percentage increase of crypto millionaires and billionaires on a year-to-date basis while outlining the likely cause of the surge in crypto millionaires.
According to the Report, there are now 172,300 individuals worldwide holding over $1 million in crypto assets. This represents a 95% increase compared to last year, with the number of Bitcoin millionaires soaring by 111% to 85,400.
The surge was not limited to the crypto millionaire’s category alone. The Centi millionaire category which represents crypto holders with over $100 million in Crypto assets in their possession jumped by 79% to a global figure of 325 crypto centi millionaires. The Top 1% of crypto holders characterized by crypto billionaires holding over $1 billion worth of crypto assets also surged by 27% to a global figure of 28.
Another stand-out data from the report is the near doubling of the market capitalization of all crypto assets. The market capitalization of all crypto assets surged from $1.2 trillion as reported by the firm last year to $2.18 trillion as of the time of writing this report.
Reason for Surge in Crypto Millionaires
The impressive surge in the number of crypto millionaires is largely driven by the introduction of spot Exchange Traded Funds (ETFs) for the two top crypto assets by market capitalization.
Spot Bitcoin ETFs were introduced in January 2024 following the approval of 11 Bitcoin ETF products by the United States Securities and Exchange Commission. The Bitcoin ETFs were issued by top financial asset managers like Blackrock, Fidelity, and Grayscale.
On May 23, 2024, the United States SEC approved Spot Exchange Traded Funds for Ethereum the second largest crypto asset by Market capitalization.
The approval of both ETFs attracted a lot of institutional capital into major financial markets, minting many millionaires.
Spot Bitcoin ETFs alone attracted a net inflow of over $12.1 billion in Q1 2024 with Blackrock’s IBIT leading the pack in terms of asset size.
Ethereum ETFs which launched in May on the other hand are expected to attract up to $10 billion in inflow according to analysts.
The two spot ETFs played a pivotal role in the surge in crypto millionaires as they both unleashed a wave of institutional capital minting crypto millionaires and driving crypto adoption to astonishing numbers.
The Surge in Newly Minted Crypto millionaires has made crypto-friendly countries in demand. These millionaires are opting to move to countries with favorable policies and a clear regulatory framework for crypto entities.
According to the report by Henley and Partners, Singapore tops the list of in-demand countries for crypto asylum seekers.
Hong Kong, The United Arab Emirates, and the United States are also up there as choice destinations.
What is an ETF?
An Exchange Traded Fund in the world of cryptocurrency is a type of financial product that allows investors to gain exposure to cryptocurrencies without directly owning the digital assets. ETFs are a more accessible way to invest in crypto than using digital wallets or crypto exchanges.
ETFs are usually issued by asset managers with a large client base of investors. A good example of an ETF is Blackrock’s iShares Bitcoin Trust (IBIT) which is among the 11 spot Bitcoin ETFs approved in January by the US SEC.
Blackrock’s IBIT leads the pack amongst the now 12 Bitcoin ETFs. It is currently the world’s largest fund for Bitcoin with over $20 billion in total assets since its approval in January.