LONDON, Aug. 27, 2024published by 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."
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
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."
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.
Borderless assets drive demand for global citizenship
Henley & Partners has seen a significant uptick in crypto-wealthy clients seeking alternative residenceand citizenshipoptions 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 migrationprograms 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'scontinued 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 Kongsecures 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.
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