According to the Crypto Wealth Report 2024 from Henley & Partners, there are 172,300 crypto millionaires in the world right now. That’s a 95% increase from a year earlier, so obviously, a growing number of people are becoming very wealthy from buying and holding crypto.

But which cryptocurrencies are they buying? Based on the report’s findings, there appear to be two primary millionaire-maker cryptocurrencies: Bitcoin (BTC 3.33%) and Ethereum (ETH 1.23%).

Bitcoin

Bitcoin accounts for nearly one-half of the total, with 85,400 millionaires. That’s a stunning increase of 111% on a year-over-year basis. And it gets even better than that, because there are also 156 Bitcoin centi-millionaires (those with wealth of $100 million or greater), as well as 11 Bitcoin billionaires.

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Henley & Partners attributes this sharp rise in the number of Bitcoin millionaires in 2024 to two key factors: the launch of the new spot Bitcoin ETFs at the start of the year and Bitcoin’s stunning climb to a new all-time high of $73,750 in the spring.

Going forward, the new spot Bitcoin ETFs have the potential to be an enormous wealth creation tool as long as the price of Bitcoin continues to rise. Not that there’s anything magical about the ETF structure in and of itself. After all, ETFs have been around for more than 30 years. But what is “magical” about the new spot Bitcoin ETFs is the ability to buy and sell crypto as easily as you buy your favorite tech stock.

The big question, of course, becomes: How much Bitcoin do you need to buy in order to become a crypto millionaire? The answer really depends on how high you think the price of Bitcoin is going to go. According to Cathie Wood of Ark Invest, for example, Bitcoin should hit a price of $1 million before 2030. If that admittedly aggressive prediction proves to come true, then you need to buy just a single Bitcoin today at a price of $56,000 and wait for it to appreciate in price over the next five years.

Ethereum

Another potential millionaire-maker crypto is Ethereum, which the report called an “apex predator asset” and a “keystone asset.” That’s because Ethereum is at the center of everything that happens in the blockchain and crypto world. Unlike Bitcoin, which functions much more like digital gold, Ethereum has many everyday use cases that make it valuable, ranging from blockchain gaming and non-fungible tokens (NFTs) to decentralized finance (DeFi).

Just like Bitcoin, Ethereum has been on a remarkable run over the past decade. Since its launch in July 2015, Ethereum has appreciated in price by nearly 2400x. Nine years ago, you could have purchased some Ethereum for your portfolio for less than $1 per coin. Flash forward to today, and the price of Ethereum is approximately $2,400.

Going forward, Ethereum has one hidden advantage that many investors don’t talk about, and that is a unique algorithmic mechanism that is steadily “burning” part of the overall Ethereum coin supply. In layman’s terms, this means that coins are steadily being removed from circulation. The crypto wealth report compared this burn mechanism to a stock buyback mechanism. Over the long haul, this should help to prop up the price of Ethereum.

The path to millionaire status

While it’s exciting to count the number of crypto millionaires in the world or to discuss the new wealth-creation products for crypto investors being launched on Wall Street, it’s also important to level set expectations. Simply stated, investing in either Bitcoin or Ethereum today won’t automatically make you a millionaire.

It’s safe to assume that a majority of the 172,300 crypto millionaires in the world today began accumulating Bitcoin and Ethereum well before they became mainstream, or even before many people had ever heard of them. That enabled them to start buying these cryptocurrencies at very low prices, and then wait for them to skyrocket in value.

However, being able to recognize an undervalued digital asset is easier said than done. For example, consider Michael Saylor, founder and chairman of MicroStrategy Inc. (NASDAQ: MSTR). He’s arguably one of the biggest Bitcoin bulls on the planet right now, and his firm owns more than 1% of all Bitcoin ever created. Yet even he admits that he didn’t start buying Bitcoin until it hit a price of $9,500 during the previous crypto bull market rally.

The good news is that it’s not too late to become a crypto millionaire. If Bitcoin really is headed to a price of $1 million one day, then there is a clear path to millionaire status for crypto investors. Just remember, though, that the path is likely to be a rocky one, with plenty of volatility ahead, so make sure that you are fully committed to investing for the long haul.