Texas Invests $10M in Bitcoin via BlackRock ETF, Plans Self-Custody Shift and Possible ETH Addition

• Texas executes $10M Bitcoin buy via IBIT on November 20 at around $87,000 per BTC, leading U.S. states in public adoption.

• State officials outline transition from ETF to full self-custody once infrastructure is ready.

• Reserve fund could expand to include Ethereum if it sustains a market cap over $500 billion for two years, per legislative guidelines.

Texas Bitcoin investment: First state makes $10M BTC buy via BlackRock IBIT, paving way for self-custody reserves. Explore implications for institutional crypto adoption. Stay informed on digital asset strategies—read more now.

What is Texas’s First Bitcoin Investment Through BlackRock’s IBIT?

Texas’s first Bitcoin investment involves a $10 million purchase executed through BlackRock’s spot Bitcoin ETF, IBIT, on November 20 at an estimated price of $87,000 per BTC. Texas Bitcoin investment represents a pioneering move by a U.S. state to integrate digital assets into public reserves for long-term stability. This step aligns with state legislation recognizing Bitcoin as a strategic asset, using the ETF as an interim compliant vehicle while self-custody systems are developed.

How Does Texas Plan to Transition to Self-Custody for Its Bitcoin Holdings?

The Texas Treasury, under Comptroller Kelly Hancock, selected BlackRock’s IBIT for this initial allocation to ensure regulatory compliance during the setup phase. Officials have confirmed intentions to shift to direct self-custody once a robust framework is in place, minimizing third-party risks associated with ETF structures. Lee Bratcher of the Texas Blockchain Council emphasized that this purchase followed extensive market monitoring, highlighting the state’s commitment to secure, sovereign control over its digital reserves. Supporting data from public filings shows the investment draws from a dedicated $10 million fund approved in June, designed to hold assets with sustained market caps exceeding $500 billion.

Texas has become the first U.S. state to purchase Bitcoin directly through a public investment program, marking a $10 million entry into the digital asset market. The buy occurred on November 20 at an estimated $87,000 per BTC and was executed through BlackRock’s IBIT ETF as the state prepares its self-custody framework.

State Confirms First Public Bitcoin Investment

Texas placed a $10 million Bitcoin investment on November 20, marking the first state-level buy of the digital asset. The purchase was executed at an estimated basis of $87,000 per BTC through BlackRock’s spot Bitcoin ETF, IBIT. The confirmation came from Lee Bratcher of the Texas Blockchain Council, who reported that the decision followed close monitoring of market activity by the Texas Treasury.

Comptroller Kelly Hancock and the state’s investment team managed the move, and they chose the ETF structure while the self-custody plan remains under development. Texas intends to transition to direct self-custody once the required framework is complete. The ETF serves as a compliant entry point during this phase.

The buy aligns with Texas legislation that recognizes Bitcoin as a strategic reserve asset. The state approved a plan in June to create a Bitcoin reserve fund for long-term financial management. The framework requires assets in the fund to hold a market cap above $500 billion.

Broader Institutional Activity and Future Plans

Officials reserved $10 million for initial digital asset exposure, and the new purchase marks the first allocation from that amount. The state may later consider adding Ether if its market cap remains above $500 billion for two years. Senator Charles Schwertner noted this possibility during discussions on the reserve fund.

Texas joins a growing list of public institutions entering Bitcoin. Wisconsin’s investment board previously purchased nearly $100 million in IBIT shares. Reports also show universities and global funds increasing exposure to spot Bitcoin ETFs.

BlackRock’s IBIT trades near $49.56 after a 10% pullback this year, and the product recorded a small after-hours gain. Texas now positions itself at the front of public-sector Bitcoin adoption as it finalizes its long-term custody and reserve plans.

Frequently Asked Questions

What prompted Texas’s initial $10 million Bitcoin investment?

Texas’s $10 million Bitcoin investment was driven by legislation establishing a strategic reserve fund in June, focusing on assets like BTC with proven market resilience above $500 billion in capitalization. The Texas Treasury, after monitoring crypto markets, allocated funds through BlackRock’s IBIT to initiate exposure while building self-custody capabilities, as confirmed by state officials.

Will Texas add other cryptocurrencies like Ethereum to its reserve fund?

Yes, Texas could include Ethereum in its reserve fund if ETH maintains a market cap over $500 billion for two consecutive years. This criterion ensures only established digital assets qualify, promoting stability in the state’s portfolio. Officials view this as a measured expansion of institutional crypto adoption.

Key Takeaways

• Pioneering State Move: Texas leads U.S. states with its $10 million BTC purchase via IBIT, setting a precedent for public sector digital asset integration.
• Self-Custody Roadmap: The ETF investment provides temporary access, with plans to transition to direct holdings for enhanced security and control.
• Potential Expansion: Future inclusions like Ethereum depend on sustained market performance, underscoring a data-driven approach to reserve building.

Conclusion

Texas’s Bitcoin investment through BlackRock’s IBIT underscores a strategic shift toward digital assets in public finance, blending immediate ETF access with long-term self-custody goals. As institutional adoption grows, this move by the Texas Blockchain Council and Treasury highlights Bitcoin’s role in reserve strategies. Looking ahead, states monitoring such developments may follow suit, bolstering crypto’s legitimacy—monitor ongoing legislative updates for further insights.