Kalam Crypto #116: Abu Dhabi Bans Bitcoin Mining on Farmland

"Bitcoin is the most important invention in the history of the world since the internet." Erik Voorhees

Ahlan wa sahlan, and welcome to the 116th edition of CoinMENA's weekly newsletter, Kalam Crypto. This week, Abu Dhabi supports bitcoin mining—just not on farmland; Australia launches its first spot bitcoin ETF; pension funds start allocating to bitcoin; and our blog of the week explores why bitcoin wrecks your hurdle rate. All that and more in this week’s Kalam Crypto.

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Local News 📍

Abu Dhabi encourages Bitcoin mining, but not on farms: The UAE, contributing 4% of Bitcoin's global hash rate with a combined mining capacity of around 400 megawatts, has emerged as a pro-Bitcoin mining jurisdiction. However, the Abu Dhabi Agriculture and Food Safety Authority has prohibited crypto mining on farms due to the misuse of subsidized electricity and water tariffs intended to stimulate the agricultural sector. Violators face penalties of up to 10,000 AED (about $2,722).

Global News 🌍

Australia launches spot bitcoin ETF: Australia has launched its first spot Bitcoin ETF, Monochrome Asset Management's Bitcoin ETF (IBTC), on the Cboe Australia exchange, joining the US, Hong Kong, and others in offering direct BTC holdings. With a 0.98% management fee, this ETF reflects growing global investor interest and confidence in Bitcoin, following similar launches in the US, the UK, and Germany.

Keep an eye on 👀

Pension Funds Investing in Bitcoin: Wisconsin's pension plan made a groundbreaking move by adding $164 million worth of spot bitcoin ETFs to its portfolio in the first quarter, signaling a potential shift for pension funds towards crypto investments. David Krause, a finance professor at Marquette University, noted that this initial step sets a precedent, suggesting other pensions may soon follow suit. Despite the current bitcoin ETF holdings being a small fraction (0.1%) of its $156 billion assets, Wisconsin's innovative approach could pave the way for broader adoption of bitcoin by institutional investors.

Blog of The Week ✍️

Bitcoin Wrecks Your Hurdle Rate: What does hurdle rate mean, and why does Bitcoin disrupt it? Check out this write-up from CoinMENA content partners Onramp Bitcoin in our latest series, sharing institutional-grade Bitcoin research for corporates and high-net-worth investors. 

CoinMENA News 🗞️

$1,000 Prize: Deposit & Win: Deposit via bank transfer or card before June 10th and qualify for our $1,000 prize! 

Tweet Of The Week 🐥

There was a glitch that caused the price of several blue chip stocks, including Warren Buffet’s Berkshire Hathaway to drop over 99% in a minute. 

Quiz Corner ✅ 

Last week’s question: Can the ETH ETF be staked? The correct answer is no.

This week’s question is, what is the most scarce financial asset in the world right now?

1. Gold

2. Bitcoin

3. Ethereum

4. U.S. Dollar

See the answer in next week’s newsletter. Or check out our new learning platform https://university.coinmena.com/