Bitaigen Research From the perspective of the Bitaigen editorial team, this article analyzes the recent Bitcoin allocation by the Texas government, explains why it chose to enter first through an ETF before moving to self‑custody, and discusses the potential impact of this move on public‑sector crypto‑asset strategies, helping readers grasp the underlying policy logic.
Texas on 20 November 2023 purchased $5 million worth of BlackRock’s IBIT ETF to acquire Bitcoin, and it is preparing an additional $5 million for direct self‑custody of Bitcoin. This marks a further upgrade in state‑level adoption of crypto assets.
The Texas government carried out a notable Bitcoin operation: buying $5 million of BlackRock’s spot Bitcoin exchange‑traded fund (ETF) shares, while earmarking another $5 million for direct self‑custody of Bitcoin. The transaction was completed on 20 November, after which the chair of the State Blockchain Committee, Lee Bratcher, highlighted its significance on the X platform.
- Acquisition method: The initial $5 million was allocated via BlackRock’s IBIT ETF.
- Self‑custody plan: The second $5 million will be used for the state government to hold Bitcoin directly.
- Funding source: A total of $10 million comes from general‑revenue appropriations (transferred in USD via SEPA/SWIFT where applicable), but only the first $5 million has been deployed so far.
Bratcher noted that, although the ultimate goal is self‑custodied Bitcoin, the related processes are still being refined. Hence, the state is using the IBIT ETF as a transitional vehicle.
Pierre Rochard, CEO of The Bitcoin Bond Company, commented on the move, saying it reflects a rapid shift in the state’s stance toward Bitcoin:
“In five years we went from ‘the government will ban Bitcoin’ to ‘the government will buy a modest amount of Bitcoin.’ Hyper‑bitcoinization has begun, is underway, and will continue.”
It remains unclear whether this action is directly linked to the state’s Strategic Bitcoin Reserve Program. In June 2023, Governor Gregg Abbott formally authorized the creation of a state‑managed fund that would hold BTC as a long‑term financial asset, using public money to build a fiscal reserve.
- Reserve threshold: According to the bill approved by Abbott, only assets with a market cap exceeding $500 billion may be included in the reserve. Bitcoin meets this criterion, but BlackRock’s IBIT ETF does not yet qualify.
- Significance: Nonetheless, the transaction represents a meaningful step forward for Texas in Bitcoin adoption.
Potential Inclusion of Ethereum
Texas’s digital‑asset strategy may extend beyond Bitcoin. In mid‑October, State Senator Charles Schwertner (one of the legislators behind the Strategic Bitcoin Reserve bill) told *Cointelegraph*:
“If Ethereum’s (ETH) market cap can stay above $500 billion for the next 24 months, I think adding it to the crypto reserve would be both reasonable and prudent.”
Wisconsin’s $100 Million Purchase of BlackRock BTC ETF in 2024
Although some reports claim Texas is the first state to acquire BTC via IBIT, documents show that the Wisconsin Investment Commission oversaw a purchase of nearly $100 million in IBIT shares back in May 2023.
- Bloomberg senior ETF analyst Eric Balachunas noted on X that Texas has joined “Harvard and Abu Dhabi” in recent IBIT purchases, calling it “the only ETF held concurrently by all three.”
- Under the current administration, U.S. acceptance of Bitcoin has continued to rise, but IBIT has fallen roughly 10 % year‑to‑date. At the time of writing, IBIT closed at $49.56, with after‑hours trading up 0.22 %.
The above provides the full picture of Texas buying Bitcoin (BTC) on a dip, acquiring $5 million of BlackRock’s IBIT. For more information on Texas’s $5 million Bitcoin ETF purchase, please explore other Bitaigen (比特根) articles!
Related Reading
- Evolution of Crypto ETFs: From Bitcoin to Altcoin Expansion
- Grayscale Files to Convert Multi‑Asset Fund into Crypto ETF
- XRP 2026: Institutional Adoption, ETFs & Strategic Reserve Logic
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