Texas Secures $5M in IBIT Shares in First Step Toward Bitcoin Reserve
Texas has taken one of its first concrete steps toward establishing a state-level bitcoin reserve, securing $5 million worth of BlackRock’s iShares Bitcoin Trust (IBIT) as it works to finalize the framework for its Texas Strategic Bitcoin Reserve.
The emerging reserve follows legislation passed earlier this year that appropriated $10 million to begin accumulating bitcoin, potentially positioning Texas as the first U.S. state to build a dedicated crypto reserve for long-term strategic purposes.
Following Texas’ purchase of $5 million in IBIT, Lee Bratcher, president of the Texas Blockchain Council, publicly congratulated the state for “buying the dip” after bitcoin fell from above $120,000 to around $87,000.
BTC price (Source: CoinGecko)
Information Gathering Phase Concludes
In recent weeks, Texas completed its formal information-gathering phase, in which the state sought input from across the crypto industry on how to best structure, secure, and manage a bitcoin reserve. The process followed a request for information (RFI) issued in September, aiming to capture the industry’s best practices for reserve management.
Multiple industry participants submitted responses detailing recommended custody arrangements, security measures, investment structures, and governance models. The state is now expected to translate that information into a formal request for proposal (RFP) to select its custodian and finalize operational guidelines.
Also read: IBIT Turns Into BlackRock’s Biggest Moneymaker Yet, Nears $100B
Placeholder IBIT ETF Position While Custodian Is Selected
Last week’s $5 million IBIT purchase is not yet a direct bitcoin allocation but rather a temporary move until a custodian contract is awarded. ETFs remain one step removed from direct ownership, but they provide states a regulated and easily managed way to gain exposure while longer-term systems are put in place.
Texas is not the first state entity to hold bitcoin ETF exposure. Other states have used public-employee retirement funds to buy similar products, including Michigan, which has been building positions, and Wisconsin, which sold its $350 million IBIT allocation in May. Still, Texas remains poised to be the first to create a formal, state-managed strategic bitcoin reserve funded through legislation.
Other States Push Ahead With Their Own Reserve Initiatives
Texas is not alone in exploring government-level crypto reserves. New Hampshire and Arizona are also pursuing similar initiatives, though both remain in early development stages.
New Hampshire became the first state to pass legislation authorizing a bitcoin reserve, yet work on its implementation continues. State Representative Keith Ammon, a leading blockchain advocate, said no reserve purchases have been made yet, but emphasized that the state is advancing related efforts.
Last week, the New Hampshire Business Finance Authority authorized a $100 million bitcoin bond, aimed at financing a crypto-backed economic development fund through the private sector.
Arizona has likewise taken initial steps, passing legislation to direct state-held unclaimed crypto assets into a dedicated reserve. The measure sets the foundation for future accumulation, though a full reserve structure has yet to be implemented.
Also read: Harvard Endowment Invests $116M in BlackRock Bitcoin ETF, Making Crypto a Top Holding
Federal Effort Still in Planning Phase
The state-level push follows federal momentum sparked by President Donald Trump’s support for a long-term U.S. government bitcoin investment.
The administration has issued an executive order to begin planning such a reserve, but officials involved in the effort are still waiting for Congress to grant necessary authority.
While the federal plan remains in early development, state-level initiatives are moving ahead more quickly.
