Bitcoin News Today: Texas Vaults Digital Gold into State Reserve, Pioneering Crypto Hedge

Texas Invests $5M in Bitcoin via BlackRock ETF, Pioneering State-Level Crypto Reserve

Texas has become the first U.S. state to allocate public funds to a Bitcoin reserve, purchasing $5 million worth of the cryptocurrency through BlackRock's iShares Bitcoin Trust (IBIT) on November 20, 2025, according to Lee Bratcher, president of the Texas Blockchain Council. The acquisition, made at an average price of $87,000 per Bitcoin, marks a significant step in the state's broader strategy to diversify its financial reserves and hedge against inflation.

The purchase was executed via IBIT, a regulated exchange-traded fund, while Texas finalizes plans for direct self-custody of its Bitcoin holdings. Governor Greg Abbott signed legislation in June 2025, allocating $10 million for the Texas Strategic Bitcoin Reserve-a move that positions the state as a national leader in crypto policy. The state's comptroller's office emphasized that the IBIT investment serves as a temporary placeholder until the procurement process for a custodian is completed, with a formal request for proposals (RFP) expected in early 2026.

The initiative aligns with Texas's pro-crypto stance, which includes blockchain innovation incentives and a regulatory framework designed to attract digital-asset businesses. The state's permanent school fund now holds Bitcoin alongside gold and U.S. Treasuries, aiming to leverage the cryptocurrency's potential as a long-term store of value. Bratcher highlighted that the purchase was timed to capitalize on a market dip, with Bitcoin trading 30% below its all-time high of over $120,000.

While institutional adoption of Bitcoin continues to grow, the state's move has sparked debate about its short-term price trajectory. CryptoQuant analysts noted that while smaller whale holders (100–1,000 BTC) and large whale holders (>10,000 BTC) are accumulating, mid-sized holders (1,000–10,000 BTC) remain net sellers, potentially delaying a full rebound above $92,000. Despite this, Texas's investment has bolstered Bitcoin ETF inflows, which rose 2% following the announcement.

Texas is not alone in its crypto ambitions. New Hampshire recently approved $100 million in Bitcoin-backed municipal bonds, while Arizona and Michigan explore similar strategies. Harvard University's endowment tripled its IBIT holdings to $442.8 million, reflecting broader institutional confidence in regulated Bitcoin vehicles. However, Texas's approach-directly funding a reserve with taxpayer money-sets it apart as a trailblazer in public-sector crypto adoption according to analysis.

Critics caution that Bitcoin's volatility poses risks, particularly for long-term fiscal planning. Yet proponents argue that the state's diversified portfolio and cold-storage requirements mitigate these concerns. The Texas Blockchain Council, which advocates for blockchain innovation, has positioned the state as a hub for digital-asset policy, leveraging its regulatory flexibility and energy infrastructure.

With $5 million remaining in its allocated budget, Texas plans to expand its Bitcoin reserve in the coming years. The state's success-or challenges-could influence other jurisdictions considering crypto investments, potentially reshaping how governments engage with digital assets. As Bratcher noted, "Texas is proving that Bitcoin can coexist with traditional reserves, offering a new tool for economic resilience in an unpredictable world" according to market analysis.