Over the past six months, the cryptocurrency market has been striving to regain its bull market pattern, but the persistent question of "when higher" overshadows the significant growth that has been recorded for 2024, as evidenced by Henley & Partners' "2024 Crypto Wealth Report."
The report includes "exclusive statistics on cryptocurrency and Bitcoin (BTC) millionaires, centi-millionaires, and new world wealth billionaires," finding that between July 1, 2023, and June 30, 2024, the number of cryptocurrency millionaires increased by 95%, while the number of Bitcoin millionaires surged by 111%, reaching 85,400 individuals.
The report states: "The total market capitalization of crypto assets has now reached an astonishing $2.3 trillion, growing by 89% compared to the $1.2 trillion reported in the company's inaugural report last year."
"The upper echelons of cryptocurrency wealth have also expanded dramatically, with the number of cryptocurrency centi-millionaires (those holding $100 million or more in cryptocurrency) increasing by 79% to 325 individuals, and even the elite group of global cryptocurrency billionaires increased by 27% to 28 individuals."
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Dominic Volek, Head of Henley & Partners' Private Client Group, stated that the introduction of cryptocurrency exchange-traded funds (ETFs) in the United States has driven gains, as they have created opportunities for "a substantial amount of institutional capital" to enter the cryptocurrency market.
"The cryptocurrency landscape of 2024 bears little resemblance to its predecessor," Volek said.
"Bitcoin rose above $73,000 in March, hitting a new all-time high, and the long-awaited approval of Bitcoin and Ethereum spot ETFs in the United States unleashed a flood of institutional capital."
He added: "There is now a growing expectation for the potential inclusion of a Solana ETF on Wall Street."
"These milestones have sown the seeds for a new era of cryptocurrency adoption, in which digital assets increasingly intersect with traditional finance and global liquidity."
Henley & Partners also released the "2024 Henley Crypto Adoption Index," which "assesses investment migration programs through the lens of cryptocurrency investors, considering factors such as public adoption, infrastructure, innovation and technology, regulatory environment, economic factors, and tax incentives," the company said.
"The index reveals a nuanced global picture," Volek said.
"Singapore leads the way, ranking first in infrastructure adoption, innovation and technology, and regulatory environment.
Hong Kong follows closely behind, thanks to its strong economic factors and tax incentives.
The UAE ranks in the top three, offering unparalleled tax incentives and a booming economy."
Volek added that the Asia-Pacific region is becoming a "cryptocurrency-friendly investment migration powerhouse," as Singapore has passed a stablecoin regulatory framework, positioning it as a "forward-thinking financial hub."
For the Middle East, particularly the UAE, he noted that the region's cryptocurrency wealth continues to flow in due to its "zero capital gains tax and progressive regulation."
Dubai's long-standing cryptocurrency-friendly history, including the approval of the first cryptocurrency fund in the Middle East in 2021, further solidifies its position as a major destination for cryptocurrency investors," he said.
He added: "Recently, Dubai has allowed residents to trade cryptocurrencies directly with bank accounts, which indicates a significant step towards mainstream adoption."
The report states that the top three jurisdictions for adopting cryptocurrencies have one thing in common: they all do not impose capital gains tax, "which is a significant advantage, especially for cryptocurrency investors and high-net-worth individuals."
They added: "This year's index highlights the increasing importance of investment migration programs in attracting cryptocurrency wealth."
"European countries such as Cyprus and Malta have advanced regulations and innovative approaches to digital assets.
In the Caribbean, Antigua and Barbuda is becoming an attractive destination, enacting groundbreaking legislation to attract entrepreneurs in the digital asset sector."
Despite the United States conducting a regulatory crackdown on all cryptocurrencies, Volek said that the country remains generally positive towards the cryptocurrency industry due to the "surge in interest following the approval of Bitcoin spot ETFs."
Volek pointed out that India is a region less welcoming to cryptocurrencies.
He said: "India is a more challenging environment for cryptocurrency investors."
"The country's strict cryptocurrency tax policy, including a 1% source deduction tax (TDS) on cryptocurrency transactions and a 30% flat tax on cryptocurrency gains, has prompted many wealthy individuals to seek other residential and citizenship options.
This growing interest highlights the desire of India's cryptocurrency-rich to find jurisdictions with more favorable conditions to optimize their digital asset investments."
Volek stated that as the barriers between traditional finance and digital finance diminish, "the synergy between investment migration and cryptocurrencies is growing stronger."
He said: "Cryptocurrency millionaires in 2024 are not just content with digital wealth; they seek the freedom of global mobility to match their borderless assets."
"As countries compete to attract this new wave of digital wealth, we can expect the development of investment migration programs to meet the unique needs of the crypto elite."
He concluded: "In this digital gold rush, the most successful jurisdictions will be those that can provide a comprehensive ecosystem for cryptocurrency investors—combining favorable regulations, robust infrastructure, and access to alternative citizenship or residency."
"As we move forward, the intersection of cryptocurrencies and investment migration will undoubtedly play a significant role in shaping the future of global wealth and liquidity."