The Texas government is investing in bitcoin through BlackRock’s spot ETF and is planning a direct self-custodied purchase.
The State of Texas has invested $5 million in BlackRock’s spot Bitcoin ETF. At the same time, another $5 million has been allocated for a direct purchase of BTC to be held in self-custody.
The transaction was carried out on November 20 and was made public on X by Lee Bratcher, president of the Texas Blockchain Council. According to Bratcher, while the state government is finalizing procedures to directly manage bitcoin in self-custody, the initial $5 million allocation was directed to BlackRock’s IBIT ETF. He also clarified that, of the $10 million provided by the general fund, a portion has not yet been invested, leaving room for future operations.
The reported transaction appears to be the first use of funds authorized under Senate Bill 21, the law signed by Governor Greg Abbott last June that established a state-managed bitcoin reserve operated through the Texas Treasury Safekeeping Trust Company.
Eric Balchunas, senior ETF analyst at Bloomberg, noted that Texas joins “Harvard and Abu Dhabi” among recent IBIT buyers, highlighting that this is likely the only ETF held by all three entities.
Pierre Rochard, CEO of The Bitcoin Bond Company, commented that Texas’s move signals a shift in attitudes toward Bitcoin within a relatively short period:
“In five years we went from ‘governments will ban bitcoin’ to ‘governments are only buying a small amount of bitcoin’. Hyperbitcoinization has happened, is happening, and will continue to happen.”
