Texas Invests $10 Million in Bitcoin: A Strategic Move

Texas has invested public funds into Bitcoin, acquiring $5 million worth of shares in a regulated Bitcoin exchange-traded fund (ETF). This transaction, made on November 20, 2025, utilized the BlackRock iShares Bitcoin Trust (IBIT) to gain exposure to Bitcoin prices without holding the cryptocurrency directly.

Key Takeaways

Texas has invested $10 million in Bitcoin through a regulated ETF, marking a significant move for a U.S. state.
The investment consisted of a $5 million purchase in the BlackRock iShares Bitcoin Trust (IBIT).
The decision aims to diversify long-term assets and acts as a hedge against market volatility.
Texas will release further details about the investment and develop plans for asset custody.
The move could set a precedent for other states considering similar strategies for public funds in cryptocurrency.

Bitcoin

The state allocated a total of $10 million for its new Strategic Bitcoin Reserve. Lee Bratcher, head of the Texas Blockchain Council, confirmed this significant purchase on X.

ETF as a Temporary Measure

Officials have indicated that the ETF was selected as an interim solution while plans for custody of the Bitcoin are being developed. The IBIT shares allow Texas to gain a stake that mirrors Bitcoin's market performance. At the time of purchase, the entry price was approximately $87,000 per Bitcoin.

This buy accounts for half of Texas's total investment allocation, leaving an additional $5 million available for potential future investments.

TEXAS BOUGHT THE DIP!
Texas becomes the FIRST state to purchase Bitcoin with a $10M investment on Nov. 20th at an approximately $87k basis!
Congratulations to Comptroller @KHancock4TX and the dedicated investments team at Texas Treasury who have been observing this market… pic.twitter.com/wsMqI9HrPD
— Lee ₿ratcher (@lee_bratcher) November 25, 2025

The investment follows a new law that was enacted earlier this year. According to state records, the reserve program was established by Senate Bill 21, which was signed into law in June 2025. This legislation allowed for a capped budget for the reserve and specified the criteria for qualifying assets. Bitcoin met these criteria, resulting in the initial allocation.

Insights from State Officials and Future Plans

According to government officials, this Bitcoin purchase is intended as a hedge against market fluctuations and a strategy for diversifying long-term investments. A Request for Proposals (RFP) process is expected to select a custodian, with plans to transition from ETF shares to direct custody once necessary systems are established. This RFP is anticipated to be released in early 2026.

BTCUSD currently trading at $86,784. Chart: TradingView

Analysts have pointed out the difference between ETF shares and direct ownership of Bitcoin. ETF holdings provide price exposure but do not grant control over the underlying Bitcoin wallets. True control will only be achieved once the state completes its custody arrangements and transfers assets into cold storage or similar secure options.

Market experts believe this investment is significant as it represents one of the first instances of a U.S. state formally committing public funds to Bitcoin exposure. While the investment amount may be small in comparison to the broader markets, its symbolic nature could encourage other states to explore similar reserve strategies, particularly in jurisdictions where lawmakers prioritize diversification of assets.

State officials will publicly disclose the details of the investment holdings and updates to the custody plan. Legal provisions mandate regular reporting, and the remaining $5 million allocation must adhere to the same oversight rules. This reporting will be scrutinized closely by lawmakers, taxpayers, and market participants.

Texas is taking a cautious approach in the evolving landscape of cryptocurrency, beginning with regulated products and later progressing towards self-custody as appropriate safeguards and vendors are identified.

Featured image from Pexels, chart from TradingView