The total market value of crypto assets has now reached a staggering $2.3 trillion, an 89% increase when compared to the $1.2 trillion last year, according to leading international wealth and investment migration specialists Henley & Partners.
In its second report entitled “Crypto Wealth Report 2024,” Henley & Partners said that there were 172,300 individuals worldwide holding over $1 million in crypto assets — a 95% increase compared to last year — with the number of Bitcoin millionaires soaring by 111% to 85,400.
The upper echelons of crypto wealth have also expanded dramatically, with the number of crypto centi-millionaires (those with crypto holdings of $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, said that the rapid growth has been fuelled 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 $73,000 in March set a new all-time high, while the long-awaited approval of spot Bitcoin and Ethereum ETFs in the US 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,” Volek said.
Head of Research at New World Wealth Andrew Amoils said that 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,” Amoils said.
Antonio Henriques, CEO of Bison Bank and Chairman of Bison Digital Assets, pointed 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,” he added.
Crypto Adoption Index
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.
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 3rd 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.
“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 favorable regulations, robust infrastructure, and pathways to alternative citizenship or residence,” Volek added.
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