Emmanuel OchayiGlobal Increase in Crypto Millionaires
The global population of crypto millionaires has surged by 95% over the past year, according to a recent report by New World Wealth and Henley & Partners.
The report highlights that the number of individuals holding over USD 1 million in crypto assets has risen to 172,300, with Bitcoin millionaires alone increasing by 111% to 85,400.
Join our WhatsApp Channel“There are now 172,300 individuals worldwide holding over USD 1 million in crypto assets—a 95% increase compared to last year,” the report states. This significant growth reflects the rapid adoption and increasing value of cryptocurrencies globally.
ETFs Behind the Boom
Dominic Volek, Group Head of Private Clients, at Henley & Partners, explained that the introduction of Crypto Exchange Traded Funds (ETFs) in major financial markets has been a key driver of this surge.
“The approval of the long-awaited spot Bitcoin and Ethereum ETFs unleashed a rapid inflow of institutional capital, minting many new millionaires,” Volek said.
The report also mentioned the possibility of a Solana ETF, which is anticipated to further increase the number of crypto millionaires.
The introduction of these ETFs has made it easier for institutional investors to enter the crypto market, significantly boosting the value of cryptocurrencies like Bitcoin and Ethereum.
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Crypto-Friendly Countries in Demand
As the number of crypto millionaires grows, there has been a corresponding increase in demand for crypto-friendly countries.
Investors are keen to move their assets to jurisdictions with clear regulations and supportive laws for cryptocurrencies.
Henley & Partners has identified the top destinations for newly minted crypto millionaires. Singapore ranks first, followed by Hong Kong, with the UAE and the United States also among the top choices.
These countries have become popular due to their favorable regulatory environments and the ease of conducting crypto-related activities.
Key Insights
The report revealed that out of the six new crypto billionaires created in 2023, five made their wealth primarily from Bitcoin.
The speculation surrounding a possible Solana ETF has also generated excitement, as it could become the third crypto asset to have a Spot Exchange Traded Fund, further boosting the number of crypto millionaires.
Andrew Amoils, Head of Research at New World Wealth, emphasised the importance of these developments. “The rise of crypto millionaires is not just a trend; it’s a reflection of the growing acceptance and integration of cryptocurrencies into mainstream finance,” he said.
The surge in crypto millionaires highlights the significant impact of the introduction of Crypto Exchange Traded Funds.
With institutional capital flowing into the market, the value of cryptocurrencies has risen dramatically, creating new millionaires and billionaires.
As crypto-friendly countries continue to attract these wealthy investors, the global crypto landscape is set for further growth.
This trend underscores the increasing role of cryptocurrencies in the global financial system and the potential for future growth as new ETFs are introduced and more countries adopt crypto-friendly regulations.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
