TLDR
Texas purchases $5 million in BlackRock’s Bitcoin ETF as part of its plan to create a state-backed crypto reserve.
The state passed legislation earlier this year, allocating $10 million for the Texas Strategic Bitcoin Reserve.
Texas issued a request for information (RFI) to industry leaders to develop best practices for managing its Bitcoin reserve.
Other states like Michigan, Wisconsin, New Hampshire, and Arizona are also exploring state-level crypto reserves.
Texas aims to be the first U.S. state to establish a formal Bitcoin reserve, with plans for custodianship and management.
Texas has made its first step toward creating a state-based cryptocurrency reserve by purchasing $5 million in BlackRock’s Bitcoin ETF. This purchase signals the state’s intention to establish a long-term investment in digital assets. Although it is not a direct cryptocurrency investment, it represents a move toward building the Texas Strategic Bitcoin Reserve.
Texas Takes Initial Step Toward a Bitcoin Reserve
According to a report by CoinDesk, the $5 million Bitcoin ETF purchase is part of Texas’ broader plan to create a state-funded crypto reserve. Texas passed legislation earlier this year, appropriating $10 million for the reserve. This purchase is seen as a placeholder until the state finalizes its strategy for direct crypto investments.
Texas officials are currently working with industry leaders to develop best practices for managing a Bitcoin reserve. The state’s comptroller’s office secured the ETF purchase as an initial step. The final goal is to set up a Bitcoin stockpile that could be maintained for future generations.
Texas also issued a request for information (RFI) to the crypto industry in September to gather insights. The RFI helped the state understand how to proceed with building a reserve and managing it efficiently. The state plans to move forward with the creation of a formal request for proposal (RFP) to select a custodian for the reserve.
Other States Begin Exploring Crypto Reserves
While Texas is making progress, other states are also exploring the idea of crypto reserves. Michigan, for example, has invested in a Bitcoin ETF with public pension funds. Wisconsin previously sold its $350 million stake in the BlackRock ETF earlier this year.
States like New Hampshire and Arizona have also begun their own efforts toward creating crypto reserves. New Hampshire passed legislation, but no moves have been made yet. Arizona aims to use unclaimed crypto property to build its own state-backed crypto stockpile.
These efforts signal a growing interest in state-level cryptocurrency investments, with Texas leading the charge. Texas’ move is expected to influence other states, encouraging them to consider their own reserves. As of now, no state has fully launched its own direct cryptocurrency stockpile.
Texas Positioned to Lead the Nation in Crypto Reserves
Texas’ $5 million ETF purchase is a significant step toward its goal of becoming the first state in the U.S. to establish a formal Bitcoin reserve. The state’s approach will likely serve as a model for other states considering similar initiatives. Texas’ proactive steps demonstrate its commitment to cryptocurrency as part of its long-term financial strategy.
The purchase was made at a price point of $87,000 per Bitcoin, following a market drop from over $120,000. This move was celebrated by local blockchain advocates, who viewed it as a timely acquisition. Texas remains on track to finalize its Bitcoin reserve in the near future, with the next steps focused on securing custodianship and further developing its reserve management plan.
