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Texas launches a $5 million Bitcoin reserve program with BlackRock's IBIT purchase
Texas last week took a new step into a strategic phase of Bitcoin investment. The state purchased approximately $5 million worth of BlackRock’s spot Bitcoin ETF “IBIT,” marking the first allocation of funds into the Texas Strategic Bitcoin Reserve. This move has attracted attention as the first case of a U.S. state government directly holding Bitcoin. Currently, Bitcoin is trading around $89,310, providing insight into the market environment at the time of Texas’s investment decision.
State-Level Bitcoin Fund Established by SB21 Law
Texas’s initiative is based on the SB21 law enacted by Governor Greg Abbott in June 2025. This innovative legislation officially established a state-level Bitcoin reserve managed by the Texas Treasury Trust. Lee Bratcher, Chair of the Texas Blockchain Council, announced on social media that the purchase was executed on November 20, 2025, confirming this historic milestone.
The $5 million investment is part of a planned $10 million Bitcoin allocation. Although the state authorities have not yet released an official document confirming the transaction, the announcement by the committee chair has made its realization certain.
Position in the State Government’s Digital Asset Strategy
The latest 13F filing from the Texas Treasury Trust reveals the overall investment portfolio. The trust holds approximately $670 million in the S&P 500 ETF (SPY) and about $34 million in large-cap funds. The newly purchased $5 million worth of IBIT is expected to be the third-largest individual holding within this portfolio.
This investment decision clearly demonstrates Texas’s intention to incorporate digital assets into its future economic strategy. Choosing BlackRock’s IBIT, a reliable Bitcoin investment product, reflects a cautious and steady approach at the institutional investor level. The market is watching whether Texas’s initial $5 million investment will set a precedent for other U.S. state governments’ digital asset holdings in the future.