Texas Moves Toward State Crypto Reserves With $5M ETF Buy
- Texas secures $5M in Bitcoin ETF exposure as it prepares a full self-custody reserve plan.
- More states study similar Bitcoin reserves as lawmakers consider digital asset bills.
- Institutional investors raise their Bitcoin ETF stakes as demand grows across funds.
Texas has taken a step toward creating a state-level Bitcoin reserve by purchasing $5 million worth of BlackRock’s iShares Bitcoin Trust (IBIT). Officials say the investment is part of a broader strategy as they continue to finalize a long-term plan for direct Bitcoin custody under the Texas Strategic Bitcoin Reserve.
Texas Advances Its Strategic Bitcoin Reserve Plan
Texas created the Strategic Bitcoin Reserve earlier this year after the governor signed the enabling legislation in June. The initiative followed efforts to design reserve plans without using taxpayer funds, and state leaders chose an ETF route while the custody framework is being built.
Officials said the state intends to self-custody Bitcoin once the procurement process ends. “Texas will eventually self-custody bitcoin,” said Lee Bratcher, President of the Texas Blockchain Council. “But while that RFP process takes place, this initial allocation was made with BlackRock’s IBIT ETF.”
The association includes more than 100 member companies and works to position Texas as a Bitcoin and blockchain hub. He also helped lawmakers during the development of the reserve bill in the state Senate.
Universities and Global Investors Expand ETF Exposure
Institutional investors have been rapidly increasing their Bitcoin ETF positions. Harvard University’s endowment tripled its IBIT holdings to $442.8 million, making IBIT its largest publicly disclosed investment. Emory University also increased its Bitcoin ETF exposure, while Abu Dhabi’s Al Warda Investments made sizable additions during the same period.
These moves show rising institutional comfort with Bitcoin exposure via ETFs. They also place Texas among large investors using Bitcoin ETFs during custody transitions. ETF structures offer regulated access while states or institutions prepare for long-term vaulting strategies.
This shift raises a pivotal question: Will more states adopt ETF holdings as a bridge toward owning spot Bitcoin directly?
Related: Texas Becomes The Third US State To Legalize Bitcoin Reserve
More States Prepare Crypto Reserve Proposals
New Hampshire and Arizona are developing their own reserve plans. New Hampshire state Representative Keith Ammon said, “no moves have been made as of today.” However, the state recently authorized a $100 million Bitcoin bond through the New Hampshire Business Finance Authority. The project is private-sector-led but aims to support a crypto-backed economic development fund.
Other states have held crypto ETF positions through retirement funds rather than sovereign reserves. While these investments involve retirement systems, they still show public-sector demand for regulated Bitcoin exposure.
Dennis Porter, CEO of the Satoshi Action Fund, stated that his organization provides legislative templates for state governments. “We are one of those organizations that is happy to meet lawmakers where they’re at,” he said, describing a strategy of incremental progress rather than rapid adoption.
Porter expects legislative activity to increase early next year. He said many states plan to revive reserve proposals, including those in Michigan and Massachusetts, as sessions reopen.
