Texas Invests $5 Million in Bitcoin ETF for Strategic Reserve

Texas has invested $5 million in a regulated Bitcoin exchange-traded fund (ETF) to gain exposure without directly holding the cryptocurrency. The purchase was made on November 20, 2025, through BlackRock's iShares Bitcoin Trust.

The state allocated a total of $10 million for its Strategic Bitcoin Reserve.
This investment represents half of the allocated budget, with $5 million still available for future investments.
The ETF was chosen as an interim measure while Texas develops custody plans.
The entry price was approximately $87,000 per BTC at the time of purchase.

Background and Legislative Context

The move follows Senate Bill 21, signed in June 2025, which authorized the reserve program with a capped budget.
Bitcoin qualified under the program's asset criteria, leading to the initial allocation.

Future Plans and Oversight

The state aims to transition from ETF holdings to direct Bitcoin custody once systems are ready, with an RFP process expected in early 2026.
The purchase is seen as a hedge and means to diversify long-term holdings.
Regular reporting will be required, ensuring transparency and oversight.

This marks one of the first instances of a US state placing public funds into Bitcoin exposure. Though small relative to broader markets, it may influence other states to consider similar strategies.