111% hike in Bitcoin millionaires – Why, how, and will they get richer now?

• Bitcoin millionaires surged by 111% in 2024, driven by new ETFs and Bitcoin highs
• Top crypto hubs like Singapore and Hong Kong benefited from favorable tax policies

Despite the recent dip in the cryptocurrency market, a dip accelerated by Bitcoin [BTC] falling below $60k on 28 August, there remains a silver lining. This, thanks to Bitcoin’s stellar performance for most of 2024.

Crypto wealth report analyzed

According to “The Crypto Wealth Report 2024” by New World Wealth and Henley & Partners, the number of BTC millionaires climbed by 111% over the past year. In fact, figures for the same are now as high as 85,400.

Source: www.henleyglobal.com

In tandem, the overall number of crypto millionaires has also seen a significant uptick, climbing to 172,300, up from 88,200 last year. 

The hike in crypto millionaires can be attributed to the introduction of newly approved spot ETFs in the U.S., which propelled Bitcoin to new heights in 2024.

After reaching an all-time high of over $73,000 in March, Bitcoin soon settled around $64,000 – Marking a 45% increase despite some retracement. Later however, BTC would fall even further on the charts. 

Over the past 12 months, BTC’s value has soared by 138%. The launch of these ETFs has been particularly impactful, amassing over $50 billion in assets since January, following a lengthy battle for approval from the Securities and Exchange Commission.

Execs weigh in…

Remarking on the same, Dominic Volek, Group Head of Private Clients at Henley & Partners said, 

“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.”

He added, 

“These milestones have seeded a new era of crypto adoption, one where digital assets increasingly cross-pollinate with traditional finance and global mobility.”

António Henriques, CEO of Bison Bank and Chairman of Bison Digital Assets, also pointed out, 

“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.”

What this means is that despite short-term fluctuations, many still strongly believe in the potential of Bitcoin and other crypto assets.

As Michael Saylor, former CEO of MicroStrategy, aptly put it,

“#Bitcoin is Rules Without Rulers.”

Nation-states step up their crypto game

Finally, the report also revealed that Singapore tops the global cryptocurrency hub index with a score of 45.7 out of 60, followed by Hong Kong and the UAE.

All three excel due to their favorable tax policies, notably their exemption from capital gains tax. This benefits crypto investors and high-net-worth individuals. 

That’s not all though. Just recently, El Salvador’s Bitcoin reserves grew to 5,851 BTC, worth about $356.4 million.

Meanwhile, Russia has shared plans that it will commence trials for crypto exchanges and cross-border transactions from 1st September 2024.

This is a sign of the persistent belief in Bitcoin’s potential, despite short-term market fluctuations.