The cryptocurrency market experienced an unprecedented surge in 2024, as revealed in the Crypto Wealth Report 2024 published by Henley & Partners, a leading international wealth and investment migration firm. The report highlights a remarkable 95% increase in the number of individuals holding over USD 1 million in crypto assets, bringing the global total to 172,300. This signifies a massive influx of wealth into the digital asset space.
Bitcoin, the flagship cryptocurrency, has been the primary driver of this growth, with the number of Bitcoin millionaires soaring by 111% to reach 85,400. The total market value of crypto assets now stands at an impressive USD 2.3 trillion, representing an 89% increase from the previous year. This rapid expansion has been fueled by several key factors, including the introduction of crypto ETFs in major financial markets and significant institutional capital inflows.
Dominic Volek, Group Head of Private Clients at Henley & Partners, emphasizes that the cryptocurrency landscape in 2024 is vastly different from previous years. He states, “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. These milestones have seeded a new era of crypto adoption, one where digital assets increasingly cross-pollinate with traditional finance and global mobility.”
The report also highlights a significant increase in the upper echelons of crypto wealth. The number of crypto centi-millionaires, individuals with crypto holdings of USD 100 million or more, has risen by 79% to 325. Additionally, the exclusive group of crypto billionaires has expanded by 27% to 28 globally. These figures underscore the growing influence of digital assets in the global economy and highlight the potential for significant wealth generation through cryptocurrencies.
Bitcoin continues to dominate the crypto market’s growth, attracting long-term investors and institutional capital. Andrew Amoils, Head of Research at New World Wealth, notes that Bitcoin has been the primary driver of billionaire growth within the crypto space. “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,” says Amoils.
The approval of spot Bitcoin ETFs in the USA has been a game-changer, opening the door for broader institutional adoption and further solidifying Bitcoin’s status as “digital gold.” Jean-Marie Mognetti, CEO and Co-founder of CoinShares, highlights the significance of this development, stating, “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 remains at the forefront, other digital assets are also playing a critical role in the evolving crypto landscape. Ethereum, often referred to as the backbone of the decentralized finance (DeFi) ecosystem, is highlighted by Lark Davis, a cryptocurrency investor and founder of Wealth Mastery, as a keystone asset in the market. “The majority of what is built in crypto is built on Ethereum, based on Ethereum, or bridges liquidity back to Ethereum,” says Davis, illustrating the complex ecosystem that has developed around cryptocurrencies.
Stablecoins, which offer the benefits of blockchain technology with reduced volatility, are also gaining traction as valuable tools for savings and investments. Guneet Kaur, an editor at Cointelegraph, notes that stablecoins leverage the transparency, security, and decentralization inherent in blockchain technology to provide a refuge for investors. This trend is part of a broader narrative where cryptocurrencies are evolving to meet diverse financial needs, from speculative investments to stable stores of value.
As the lines between traditional and digital finance continue to blur, the demand for global citizenship among crypto elites is on the rise. Henley & Partners has observed a significant uptick in crypto-wealthy clients seeking alternative residence and citizenship options in 2024. To address this growing interest, 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.
Singapore continues to lead the index as the premier cryptocurrency hub, achieving the top score of 45.7 out of 60. The city-state excels in technological innovation, regulatory framework, and infrastructure development, making it an attractive destination for crypto investors. Hong Kong (SAR China) follows closely, distinguished by its strong economic fundamentals and investor-friendly tax policies. The UAE secures the third position, offering significant tax advantages and a rapidly expanding digital economy. Notably, none of these three countries levies capital gains tax, a significant advantage for crypto investors and high-net-worth individuals.
As the cryptocurrency market continues to grow, the synergy between investment migration and digital assets is becoming increasingly evident. Henley & Partners’ Dominic Volek notes that 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,” says Volek.
The Crypto Wealth Report 2024 also explores various considerations for investors beyond just tax implications. It delves into 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. These factors collectively shape the landscape for digital asset investors and entrepreneurs, offering insights into the future of wealth creation in the digital age.
The findings of the Crypto Wealth Report 2024 highlight the rapid growth and expanding influence of digital assets in the global economy. With a 95% increase in crypto millionaires and significant gains in the number of centi-millionaires and billionaires, cryptocurrencies are clearly becoming a major force in wealth creation. The approval of crypto ETFs, particularly in major financial markets like the USA, has further fueled this growth, attracting institutional capital and solidifying the role of digital assets in traditional finance. As the crypto market continues to evolve, the demand for global citizenship among crypto elites is expected to rise, driving further innovation in investment migration programs. The intersection of digital and traditional finance is creating new opportunities for wealth creation, offering a glimpse into the future of global finance. As we move forward, the synergy between cryptocurrencies and global mobility will likely shape the next chapter in the story of wealth creation, offering unprecedented opportunities for investors worldwide.
