Texas has taken a significant step toward building a state-backed Bitcoin position, purchasing $5 million worth of BlackRock’s spot Bitcoin ETF and preparing a second $5 million buy that will be held in the state’s own custody.
Key Takeaways:
- Texas purchased $5M of BlackRock’s Bitcoin ETF and plans another $5M in directly self-custodied BTC.
- The state has a $10M allocation for Bitcoin, with self-custody set to replace ETF exposure once systems are ready.
- The move highlights shifting government sentiment toward Bitcoin, as other states like Wisconsin have also bought IBIT.
The Nov. 20 transaction was disclosed this week by Lee Bratcher, president of the Texas Blockchain Council, who said the initial exposure was routed through BlackRock’s iShares Bitcoin Trust (IBIT) while the state finalizes its long-term custody framework.
Texas Prepares $5M Direct Bitcoin Buy After Initial ETF Allocation
Bratcher noted that Texas has earmarked $10 million in total, though only half of the allocation has been deployed so far.
The remaining funds are expected to go directly into BTC once the state’s custody systems are ready.
“Texas will self-custody Bitcoin,” he wrote, emphasizing that the ETF purchase is only a temporary starting point.
The move drew swift reactions from industry figures. Pierre Rochard, CEO of The Bitcoin Bond Company, said Texas’ action shows how quickly sentiment among governments has shifted.
“In five years we went from ‘governments will ban bitcoin’ to ‘governments are only buying a small amount of bitcoin.’ Hyperbitcoinization has happened, is happening, and will continue to happen,” he said.
Whether this purchase is connected to Texas’ planned strategic Bitcoin reserve remains unclear.
In June, Governor Gregg Abbott approved legislation allowing the state to hold BTC as part of its long-term financial assets.
The framework limits the reserve to assets with a market cap above $500 billion, a threshold that Bitcoin easily exceeds.
BlackRock’s ETF, however, does not qualify under the rule, indicating that the ETF purchase is an interim measure rather than part of the official reserve.
Texas is not the first state to gain exposure through IBIT. Wisconsin’s investment board acquired nearly $100 million in IBIT shares in May 2024, filings show.
Harvard Reveals $443M Bitcoin ETF Bet
Harvard’s endowment fund recently disclosed a $443 million IBIT allocation, accounting for roughly 20% of its reported U.S. equity exposure.
The move represents one of the most significant institutional endorsements of Bitcoin exposure among elite university endowments, ranking Harvard as the 16th-largest holder of the BlackRock-managed fund.
The latest 13F filing shows Harvard increased its stake from 1.9 million shares reported in June, while simultaneously growing its gold ETF holdings by 99% to 661,391 shares worth $235 million.
As reported, Al Warda Investments, an investment arm under the Abu Dhabi Investment Council (ADIC), has also increased its exposure to Bitcoin in the third quarter, more than tripling its position in BlackRock’s IBIT.
The firm disclosed a 230% jump in holdings to just under 8 million shares, valued at $517.6 million.
ADIC, part of Mubadala Investment Co., one of Abu Dhabi’s leading sovereign-wealth groups, rarely makes public bets in listed digital assets, typically leaning toward private market strategies such as buyouts, infrastructure, and real estate.
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