Texas Becomes First U.S. State to Buy Bitcoin via BlackRock’s IBIT ETF
Texas has allocated half of its $10 million Strategic Bitcoin Reserve to IBIT shares as a first step toward direct Bitcoin custody under a new state law.
Texas purchased $5 million worth of BlackRock’s iShares Bitcoin Trust (IBIT) ETF shares on November 20, 2025, as part of its $10 million Strategic Bitcoin Reserve created under Senate Bill 21. The ETF buy serves as an interim measure while custody plans are developed, with a request for proposals expected in early 2026. The purchase price was roughly $87,000 per Bitcoin. Texas aims to shift funds from ETF exposure to direct custody once systems and vendors are in place. Officials state the reserve is meant to hedge and diversify state holdings. The move makes Texas the first U.S. state to place public funds into Bitcoin exposure, potentially influencing other states’ strategies.
- iShares Bitcoin Trust (IBIT): A Bitcoin-focused ETF by BlackRock that allows investors to gain exposure to Bitcoin without directly holding the cryptocurrency.
- Texas Strategic Bitcoin Reserve: A state initiative under SB 21 aimed at building and managing Texas’s Bitcoin holdings as part of its financial reserve strategy.
- Direct Custody: A method of holding cryptocurrency where the owner controls the private keys and on-chain assets, often through cold storage solutions.