Survey Report: How many billionaires have been created by cryptocurrency?

Author: Robert Frank, CNBC; Compiler: Baishui, Golden Finance

Summary

• The number of crypto millionaires around the world has soared 95% over the past year, according to a new report, as Bitcoin ETFs and other crypto assets have climbed.

• There are now 172,300 people around the world who hold more than $1 million in crypto assets, according to a report from New World Wealth and Henley & Partners.

• The number of pure Bitcoin millionaires has more than doubled to 85,400.

• The surge reflects the rapid growth of Bitcoin ETFs, which have surpassed $50 billion in assets since their launch in January.

The number of crypto millionaires worldwide has surged 95% over the past year as bitcoin exchange-traded funds and other crypto assets climb, according to a new report.

There are now 172,300 people worldwide with more than $1 million in crypto assets, up from 88,200 last year, according to the report from New World Wealth and Henley & Partners. The number of pure bitcoin millionaires more than doubled to 85,400.

The ranks of the crypto rich are climbing, all the way to the top of the wealth ladder. There are now 325 crypto multimillionaires (those holding $100 million or more in crypto assets) and 28 crypto billionaires, the report said. The surge reflects the rapid growth of bitcoin ETFs, which have surpassed $50 billion in assets since launching in January and sparked a wave of institutional participation. Bitcoin prices have risen 45% this year to about $64,000. As the value of other currencies has risen, the market value of crypto assets has increased to $2.3 trillion from $1.2 trillion last summer, according to Henley & Partners.

Five of the six new crypto billionaires created in the past year can attribute their new wealth to Bitcoin,"which highlights Bitcoin's dominance in attracting long-term investors who buy large amounts of the asset," said Andrew Amoils, head of research at New World Wealth.

For the third consecutive year, the richest crypto billionaire is Changpeng Zhao, founder and former CEO of cryptocurrency exchange Binance, who is worth an estimated $33 billion, according to Forbes. Zhao pleaded guilty to U.S. money laundering charges in November and agreed to pay a $50 million fine. His wealth has soared by more than $10.5 billion over the past year.

In second place is Brian Armstrong, co-founder of Coinbase,

who is worth an estimated $11 billion, according to Forbes. He is followed by Tether CFO Giancarlo Devasini and MicroStrategy co-founder Michael Saylor, according to the list.

Admittedly, many crypto assets are still below their 2021 highs, and Bitcoin's recent rise essentially marks a three-year return to that level. Crypto assets reached a market cap of $3 trillion in November 2021.

However, growing acceptance of crypto assets by large asset managers such as BlackRock and Fidelity, helped by Morgan Stanley's 15,000-broker sales force, could further drive wealth creation among large crypto holders.

Not only will cryptocurrencies create more millionaires and billionaires, they will also change where the wealthy live and work.Many of the newly wealthy crypto-investors are looking to relocate to tax-friendly and crypto-friendly jurisdictions, according to Henley & Partners.

“We have seen a significant increase in the number of crypto-rich clients seeking alternative residency and citizenship options,” said Dominic Volek, head of private clients at Henley & Partners.

To better advise the newly rich crypto-rich, Henley created a “crypto adoption index” that ranks countries based on how they tax and regulate cryptocurrencies. Henley said Singapore ranked first in the index due to its “supportive banking system, significant investment, comprehensive regulations such as the Payment Services Act, regulatory sandbox and alignment with global standards.”

Hong Kong ranked second, followed by the United Arab Emirates and the United States.In the United States, 15% of the population owns cryptocurrencies, according to the report. “This is supported by a strong infrastructure, a high density of cryptocurrency ATMs, crypto-friendly banks, and a growing number of businesses accepting cryptocurrencies,” the report said.