Six out of 22 billionaires involved in crypto trading made their wealth from Bitcoin.
Henley & Partners, a London-based investment migration consultancy, has shed light on the number of crypto millionaires, revealing that a small but substantial group made their fortunes specifically with the help of Bitcoin (BTC).
The report, released on September 5th, points to increasing interest among millionaires to diversify their portfolios with cryptocurrency holdings.
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The “Crypto Wealth Report” estimates that over 88,000 millionaires worldwide own cryptocurrencies. Out of this group, 40,500 are Bitcoin holders. Intriguingly, six of the 22 traders who have accumulated over $1 billion in crypto assets did so primarily by trading Bitcoin.
Compared to the estimated global population of millionaires, which stands at 56.1 million as of July 2023, these numbers indicate that less than 0.2% of millionaires have significant crypto investments.
Juerg Steffen, CEO of Henley & Partners, noted that the consultancy firm has seen a surge in crypto-related inquiries from high-net-worth individuals. According to him, these inquiries are motivated by concerns over "potential future bans on the trading or use of cryptocurrencies in their countries" as well as efforts to "allay the risks of aggressive fiscal policies that tax digital assets at source."
Cybersecurity expert Ali Khan commented on the emerging legitimacy of crypto wealth.
The leadership of an increasing number of jurisdictions understand the legitimate nature of <crypto-based> wealth and have produced mechanisms for it to be stored securely, with soft infrastructure that renders it treated in the same manner as almost any other tangible or intangible asset class.
While the report doesn't name the individuals who are part of the crypto millionaire and billionaire club, it can be assumed that some of the known figures in the cryptocurrency arena include Barry Silbert of Digital Currency Group, the Winklevoss twins who co-founded Gemini, Binance CEO Changpeng Zhao and Coinbase CEO Brian Armstrong.
The Henley & Partners report highlights the rise of crypto millionaires and billionaires, particularly those profiting from Bitcoin trading. This comes as more high-net-worth individuals look to cryptocurrencies as a means to diversify their portfolios and protect their wealth. Despite the market's high volatility, it appears that for a select few, the crypto space offers unparalleled opportunities for financial gains.
