Texas Invests $10M in Bitcoin via BlackRock ETF

Texas has made financial history by becoming the first U.S. state to formally invest public money in Bitcoin, executing a $5 million purchase of BlackRock’s iShares Bitcoin Trust (IBIT) on November 20, 2025. This initial investment represents exactly half of the state’s $10 million Strategic Bitcoin Reserve authorized under Senate Bill 21, which was signed into law in June 2025. The legislation created a capped budget for cryptocurrency exposure and established specific criteria that Bitcoin met, prompting this landmark allocation.

Lee Bratcher, President of the Texas Blockchain Council, confirmed the state’s crypto purchase on social media platform X, celebrating what he characterized as ‘Texas buying the dip’ at an equivalent price of approximately $87,000 per Bitcoin. The announcement highlighted Comptroller Glenn Hegar (@KHancock4TX) and the investment team at Texas Treasury, who had been monitoring the cryptocurrency market before executing this strategic move. The purchase marks a significant milestone in institutional cryptocurrency adoption, representing one of the first instances of a U.S. state formally placing public funds into Bitcoin exposure.

State officials have disclosed that the ETF route serves as a temporary measure while Texas develops comprehensive custody plans for direct Bitcoin ownership. The BlackRock iShares Bitcoin Trust provides the state with price exposure to Bitcoin’s market movements without requiring immediate handling of the underlying cryptocurrency. This approach allows Texas to gain market participation while maintaining the regulatory safeguards of a regulated investment product during the custody infrastructure development phase.

The distinction between ETF shares and direct Bitcoin ownership is significant from both operational and security perspectives. ETF holdings provide price correlation to Bitcoin but do not grant the state direct control over on-chain Bitcoin wallets. That level of control will only materialize after Texas completes its custody procurement process and transitions assets into secure storage solutions such as cold storage. According to public statements, the request for proposals for custody services is slated for early 2026, with officials planning to transfer from ETF positions to direct custody once proper systems and vendors are selected.

According to state officials, the Bitcoin purchase serves dual purposes as both a hedge against traditional market volatility and a method to diversify long-term state holdings. The strategic allocation reflects growing recognition of cryptocurrency as a legitimate reserve asset class, particularly in states where lawmakers favor portfolio diversification. While the $10 million total allocation represents a small amount relative to broader financial markets, its symbolic importance could influence other states considering similar reserve strategies.

Market observers note that Texas’s careful, phased approach—using regulated products initially before moving toward self-custody—demonstrates a measured methodology that other government entities might emulate. The move occurs amid wider debate about how public institutions should handle cryptocurrency assets, with Texas providing a potential blueprint that balances innovation with prudent risk management. The state’s use of established financial infrastructure through BlackRock’s IBIT provides a bridge between traditional finance and emerging digital asset classes.

Built into the legislative framework are robust oversight mechanisms requiring regular reporting on the Bitcoin holdings. According to public filings, the state will publish details of the IBIT positions and provide updates on custody plan development. These reports will be closely monitored by lawmakers, taxpayers, and financial market participants, ensuring transparency throughout the implementation process.

The remaining $5 million allocation must follow the same rules and reporting requirements before deployment, providing additional opportunity for public scrutiny. The structured approach allows Texas to methodically scale its Bitcoin exposure while maintaining accountability. As the state moves forward with its custody procurement in early 2026, the transition from ETF-based exposure to direct Bitcoin ownership will represent the next phase in this pioneering state-level cryptocurrency strategy, potentially setting precedents for other public entities considering digital asset allocation.