Texas has been funneling government money to the US Bitcoin exposure, by purchasing $5 million worth of shares in a regulated Bitcoin exchange-trad fund.
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According to reports, the state purchase took place on November 20, 2025 and used the BlackRock iShares Bitcoin Trust (IBIT) to gain price exposure without immediately owning the cryptocurrency itself.
The state has set aside a total allocation of $10 million for its new Strategic Bitcoin Reserve. Lee Bratcher, leader of the Texas Blockchain Council, confirmed the state’s crypto purchase on X.
State uses ETF as an intermediate step
Reports have revealed that officials for the ETF route as a temporary measure while the state implements guardianship plans.
The IBIT shares give Texas a stock that follows Bitcoin’s market movements. Based on reports, the entry price equated to approximately $87,000 per BTC at the time of the purchase.
The purchase represents half of the total allocation, leaving $5 million available for future moves.
TEXAS HAS BOUGHT THE DIP!
Texas will become the FIRST state to purchase Bitcoin on November 20 with a $10 million investment for approximately $87,000!
Congratulations to the controller @KHancock4TX and Texas Treasury’s dedicated investment team who have been watching this market… pic.twitter.com/wsMqI9HrPD— Lee ₿ratcher (@lee_bratcher) November 25, 2025
This move follows legislation passed earlier this year. According to public records, the reserve program was created by Senate Bill 21, signed into law in June 2025.
The law allows a capped budget for the reserve and sets conditions for which assets qualify. Reports have revealed that Bitcoin met the criteria of the measure, prompting the initial allocation.
What officials say and what comes next
State officials say the purchase is intended as a hedge and a way to diversify long-term investments. An RFP process is expected to choose a custodian, with officials planning to move from ETF holdings to direct custody once the systems are ready. The request for proposals is scheduled for early 2026, based on public statements.
Analysts noted the distinction between ETF shares and direct ownership. ETF investments provide price exposure; they do not give the state direct control over on-chain Bitcoin wallets. That control would only come after the state completed the guardianship tender and transferred assets to cold storage or similar solutions.
Possible broader effects
Market observers say the purchase is notable because it marks one of the first examples of a U.S. state formally putting public funds into Bitcoin exposure.
The amount is small compared to broader markets, but still symbolic. It could prompt other states to consider similar fallback strategies, especially if lawmakers favor diversification.
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Transparency and supervision
The state will release details of the assets and any updates to the preservation plan, according to public records. Oversight mechanisms built into the law require regular reporting, and the remaining $5 million allocation must meet the same rules before being used. That reporting will be closely watched by lawmakers, taxpayers and market observers.
The purchase decision was made amid a wide debate about how government agencies should handle crypto assets. Texas plans to proceed cautiously, using regulated products first and then moving to restraint as the right safeguards and suppliers are chosen.
Featured image from Pexels, chart from TradingView