Texas Invests $5 Million in Bitcoin ETF for State Crypto Reserve

The state of Texas has announced a $5 million investment in shares of BlackRock’s iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF). This move, confirmed by a spokesperson for the Texas Department of Public Accounts, is part of Texas’s broader initiative to establish a state-controlled Bitcoin reserve fund.

This purchase follows a bill passed earlier this year that allocated $10 million towards creating the Texas Strategic Bitcoin Reserve. As part of this initiative, Texas has conducted an information-gathering phase, seeking feedback from the cryptocurrency sector on effective practices for operating and managing such reserves.

While Texas isn’t the first state to invest government funds in crypto ETFs—states like Michigan and Wisconsin have made similar allocations for pension funds—this step is significant as it moves toward states directly owning and overseeing their own crypto reserves.

Texas’s decision places it at the forefront in the competition among U.S. states to set up government-owned crypto stockpiles. Other states, including New Hampshire and Arizona, are also exploring similar initiatives. New Hampshire is still in planning, even though it was the first to pass a relevant bill, while Arizona is actively working to use unclaimed cryptocurrencies to build its reserves.

The push for state-run crypto reserves is gaining traction, particularly after former President Trump’s call for the federal government to invest in long-term cryptocurrencies. However, federal efforts are in early stages, as officials await Congressional action to gain the authority to proceed.

Despite the ongoing market downturn, supporters argue that the current situation is unlikely to deter legislative interest. Lee Bratcher, president of the Texas Blockchain Council, commended Texas for “buying the dip,” noting that acquiring shares in a Bitcoin ETF at around $87,000 represents a strong move.