Texas has made history as the first state in the U.S. to directly invest in
Bitcoin
by acquiring $5 million worth of shares in BlackRock's
iShares Bitcoin Trust
(IBIT) on November 20, 2025. This purchase represents a major milestone in the state's broader $10 million plan to build a strategic Bitcoin reserve. Lee Bratcher, president of the Texas Blockchain Council, confirmed the transaction, which took place during a market downturn with
Bitcoin valued at around $87,000
per coin. For now, the ETF investment acts as a temporary solution while Texas develops its own infrastructure for holding Bitcoin directly,
a transition anticipated
once the necessary custodial and security systems are in place.
This acquisition is in line with the Texas Strategic Bitcoin Reserve Act (SB 21),
a bill signed by Governor Greg Abbott
in June 2025. The law permits the state to hold digital assets with a minimum 24-month average market capitalization of $500 billion—a threshold currently met only by Bitcoin. The Texas Treasury Safekeeping Trust Company is tasked with managing the reserve, focusing on long-term diversification. While the ETF provides immediate market access,
the state intends to move at least $5 million
into directly managed Bitcoin wallets once its custodial framework is ready.
Texas is taking a measured, step-by-step approach to incorporating Bitcoin into its state assets. By initially using
IBIT
the state is addressing practical hurdles
in establishing secure, sovereign-grade custody—such as finding qualified custodians, setting up cold storage, and arranging independent audits. This interim strategy is similar to those adopted by other major institutions,
including Harvard University and Abu Dhabi's sovereign wealth fund
, which have also invested in IBIT. However, Texas distinguishes itself by its clear plan to eventually hold Bitcoin directly, potentially setting an example for other states.
Texas’s decision to allocate public funds to Bitcoin marks a notable change in how institutions view digital assets.
Pierre Rochard, CEO of The Bitcoin Bond Company
, pointed out that government attitudes toward cryptocurrency have shifted significantly over the past five years—from expectations of bans to cautious involvement. Texas’s move also fits into a larger political context,
with states like New Hampshire and Arizona considering similar reserves
, and the Trump administration advocating for a national crypto policy.
Although the $5 million investment is small compared to Texas’s $2.7 trillion economy,
its symbolic and structural impact is significant
. Furthermore,
there is potential for the program to grow
—for example,
Ethereum
could be included if it maintains a $500 billion market cap—demonstrating Texas’s forward-thinking stance.
This initiative has also brought attention to the increasing institutional acceptance of Bitcoin.
BlackRock's IBIT, the largest Bitcoin ETF
, has seen more than $62 billion in total inflows, with Texas joining a growing number of organizations using the fund to access digital assets. However,
Texas’s move to eventually self-custody could decrease the available supply of tradable Bitcoin
, potentially helping to stabilize the market by introducing a buyer that acts against market cycles.
As Texas works to complete its custodial systems, the state’s next actions—both in deploying the remaining $5 million and refining its reserve strategy—will be closely monitored. The outcome of this project could help legitimize Bitcoin as an asset for public treasuries and influence the future of institutional crypto adoption.
