- Texas begins its state backed Bitcoin reserve with a $5M IBIT purchase as it prepares for a larger self custody move.
- The new reserve sets strict rules and only assets above $500B qualify which places Bitcoin as the sole eligible option.
- More public funds gain Bitcoin exposure as global institutions expand IBIT holdings and support wider adoption.
Texas advanced its digital asset plans on Nov. 20 after executing a $5 million purchase of BlackRock’s spot Bitcoin ETF. The transaction marked the first confirmed step toward the state’s long-term strategy to hold Bitcoin within a public treasury fund. The Texas Blockchain Council highlighted the move on X, noting that another $5 million remains reserved for an upcoming self-custodied allocation.
The state used BlackRock’s IBIT ETF for the initial transaction because its self-custody framework is still under development. The full $10 million allocation is drawn from general revenue, although the second half remains pending. The purchase signaled a shift for a state that once debated the role of digital assets but now positions Bitcoin alongside traditional long-term holdings.
State Reserve Framework Takes Shape
Texas approved the creation of a strategic Bitcoin reserve earlier this year through legislation signed by Governor Greg Abbott. The plan authorized public funds to support a treasury asset that may hold a mix of high-value digital assets over time. The bill set a clear threshold for inclusion. Only assets with a market cap above $500 billion may enter the reserve. Bitcoin meets the requirement while IBIT does not, since the rule applies to the underlying asset rather than the ETF structure.
The reserve aligns with Texas’s broader effort to expand its financial tools. It places Bitcoin alongside legacy funds managed by the Texas Treasury Safekeeping Trust Company. The Trust reported significant exposure to SPY and a Janus Henderson fund in recent filings. A $5 million IBIT purchase would become the third position in that portfolio if confirmed in official documents.
Potential Expansion Toward Ethereum
Texas lawmakers have continued to monitor market trends as they shape the reserve. Some officials indicated that Ethereum may join the reserve if its market cap maintains a level above $500 billion for 24 months. That requirement reflects the reserve’s emphasis on asset maturity and long-term value. Present conditions place Bitcoin as the only asset eligible for entry, yet the framework leaves room for future additions.
State Participation Gains Momentum
Texas is not the only state exploring exposure to Bitcoin. Wisconsin executed a much larger IBIT allocation last year and acquired nearly $100 million worth of ETF shares. Its move established an early precedent for U.S. state-level participation in spot Bitcoin products.
However, Texas gained attention this month as the first state to direct funds into a dedicated strategic Bitcoin reserve. The state’s early activity places it at the front of a growing trend among public institutions. Global entities have also expanded their IBIT positions. An Abu Dhabi sovereign wealth fund increased its holdings this month, and Harvard disclosed ownership of several million IBIT shares earlier this year.
These developments show wider adoption across public and institutional portfolios as Bitcoin continues to integrate into mainstream asset management frameworks.
