International Blockchain & Cryptocurrency

There are now 172,300 individuals worldwide holding over USD 1 million in crypto assets — a 95% increase compared to last year — with the number of Bitcoin millionaires soaring by 111% to 85,400, according to the Crypto Wealth Report 2024 published by leading international wealth and investment migration specialists Henley & Partners.

The total market value of crypto assets has now reached a staggering USD 2.3 trillion, an 89% increase when compared to the USD 1.2 trillion reported in the firm’s inaugural report last year. The upper echelons of crypto wealth have also expanded dramatically, with the number of crypto centi-millionaires (those with crypto holdings of USD 100 million or more) rising by 79% to 325, and even the rarefied cohort of crypto billionaires seeing a 27% increase to 28 globally.

Dominic Volek, Group Head of Private Clients at Henley & Partners, says the rapid growth has been fueled by the introduction of crypto ETFs in major financial markets, ushering in significant institutional capital. “The 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.”

The Crypto Wealth Report 2024 includes exclusive statistics on crypto and Bitcoin millionaires, centi-millionaires, and billionaires provided by global wealth intelligence firm New World Wealth, along with insights from leading academics, industry experts, and crypto players. It also features an updated version of the Henley Crypto Adoption Index 2024, comparing the best residence and citizenship by investment programs for crypto investors.

Head of Research at New World Wealth, Andrew Amoils, says the millionaire band performed best over the past year, while billionaire growth was much lower and mainly driven by Bitcoin. “Of 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.”

Digital gold rush creates sizeable crypto elite

As the cryptocurrency market continues to evolve, the Crypto Wealth Report 2024 examines various considerations for investors beyond just tax implications. It explores regulatory environments across different jurisdictions, the importance of technological infrastructure, estate planning for digital assets, the rise of decentralized finance, and the impact of cryptocurrencies on traditional financial systems. The report also highlights how these factors collectively shape the landscape for digital asset investors and entrepreneurs.

Commenting in the report, António Henriques, CEO of Bison Bank and Chairman of Bison Digital Assets, points out that “in the rapidly evolving world of finance, cryptocurrencies are challenging the dominance of traditional fiat currencies. As these two financial realms intersect, we are witnessing the dawn of a new era in global finance, where the innovative potential of digital assets meets the stability of traditional money”. Jean-Marie Mognetti, CEO and Co-founder of CoinShares, points out that “the SEC’s approval of spot Bitcoin ETFs marks 2024 as a transformative year for the digital asset industry, paving the way for broader institutional adoption. Bitcoin’s potential to enhance the performance of traditional investment portfolios underscores its growing significance in the financial world”.

In his analysis, Henry Burrows, CEO of Hoptrail, emphasizes the shift in wealth creation paradigms. “Among previous generations, by and large wealth derived from property and stocks. But today, it stems from Bitcoin, Ethereum, NFTs, initial coin offerings, mining, yield farming, and staking. And in many cases, staggering returns are made from relatively small amounts of initial capital.”

While Bitcoin often dominates headlines, Lark Davis, cryptocurrency investor and founder of Wealth Mastery, highlights the critical role of another major player: “Ethereum is a keystone asset of the market. The majority of what is built in crypto is built on Ethereum, based on Ethereum, or bridges liquidity back to Ethereum.” This insight illustrates the complex ecosystem that has developed around cryptocurrencies, extending far beyond simple currency alternatives.

Complementing these views, Guneet Kaur, an editor at Cointelegraph, points to an emerging trend within the crypto space that addresses some of the volatility concerns: “By leveraging blockchain technology’s inherent qualities, namely, transparency, security, and decentralization, stablecoins offer a refuge for investors and a powerful tool for savings and investments. ” Kaur’s observation aligns with the broader narrative of cryptocurrencies evolving to meet diverse financial needs, from speculative investments to more stable stores of value.

Borderless assets drive demand for global citizenship

Henley & Partners has seen a significant uptick in crypto-wealthy clients seeking alternative residence and citizenship options in 2024. To make sense of this changing crypto landscape, the firm has unveiled its second annual Henley Crypto Adoption Index. This comprehensive tool evaluates investment migration programs through the lens of the crypto investor, considering factors such as public adoption, infrastructure, innovation and technology, regulatory environment, economic factors, and tax-friendliness.

The index showcases Singapore’s continued dominance as the premier cryptocurrency hub, achieving the top score of 45.7 out of 60. Singapore excels in areas such as technological innovation, regulatory framework, and infrastructure development. Following closely is Hong Kong (SAR China), distinguished by its strong economic fundamentals and investor-friendly tax policies. The UAE secures the 3^rd position, offering significant tax advantages and a rapidly expanding digital economy. Notably, none of these three countries levies capital gains tax, which is a significant advantage, especially for crypto investors and high-net-worth individuals.

This year’s index underscores the increasing significance of investment migration programs in drawing crypto wealth. European nations such as Cyprus and Malta feature progressive regulations and innovative approaches to digital assets. In the Caribbean, Antigua and Barbuda is emerging as an attractive destination, having enacted pioneering legislation to entice entrepreneurs in the digital asset space.

Volek concludes that as the lines between traditional and digital finance continue to blur, the synergy between investment migration and cryptocurrencies grows stronger. “The 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 — combining favourable regulations, robust infrastructure, and pathways to alternative citizenship or residence.”