Although cryptocurrencies are often hailed as tools for financial inclusion, a recent study by Henley & Partners tells a different story. The report unveils that a slim number of investors, just 22 individuals worldwide, hold over $1 billion in crypto assets. Even more intriguingly, only six of these billionaires have their investments locked into Bitcoin, suggesting a broader shift in preferences among the super-rich.
While the cryptocurrency landscape may be teeming with retail investors, the Henley & Partners report highlighted the substantial wealth disparity that exists within the digital realm. The minimal number of Bitcoin-centric billionaires indicates a trend among high-net-worth individuals to diversify their holdings beyond the seminal cryptocurrency. This shift could be interpreted as an evolving risk assessment by the affluent, taking into account emerging cryptocurrencies that promise utility beyond mere value storage, such as Ethereum’s smart contracts.
Further illuminating this economic divide is the fact that only 88,200 of the world’s 56 million millionaires own any cryptocurrency, representing less than 0.2% of the global millionaire populace. Of this minuscule percentage, 40,500 are invested in Bitcoin. This speaks volumes about the adoption rate among traditional millionaires who, despite being financially well-equipped to enter the market, remain largely on the sidelines.
What’s also captivating is the identification of 182 individuals worldwide classified as “centi-millionaires”, those with holdings exceeding $100 million in cryptocurrency assets. Among this elite group, 78 are primarily invested in Bitcoin, illustrating a cautious yet optimistic outlook on the currency’s future.
According to Juerg Steffen, CEO of Henley & Partners, the increase in cryptocurrency inquiries from wealthy individuals isn’t solely based on investment potential. Many are seeking ways to navigate potential regulatory headwinds and fiscal policies that could impact their sizable digital investments.
The seemingly democratizing force of cryptocurrencies may actually be a mirage. The data suggest that the crypto community is witnessing the early stages of a financial landscape where crypto assets, far from being a great equalizer, are concentrated in the hands of a select few. Moreover, the rich aren’t just viewing digital assets as a quick buck but are contemplating complex strategies around them, influenced by looming regulatory and tax landscapes.
