The state’s crypto investment acts as a placeholder while a permanent custodian is finalised, signalling Texas’ ambitions to lead in digital assets.
Texas has become the first US state to fund a strategic cryptocurrency reserve, purchasing approximately $5 million in Bitcoin through BlackRock’s iShares Bitcoin Trust ETF.
The move follows Governor Greg Abbott signing Senate Bill 21, allowing the comptroller’s office to create a public crypto reserve. states, such as New Hampshire and Arizona, have passed similar bills, but Texas is the first to execute an actual purchase.
The ETF acquisition acts as a temporary measure while the state finalises a contract with a cryptocurrency custodian. Comptroller representatives called the purchase a ‘placeholder investment’ while reviewing bids for a permanent custodian.
Lawmakers have allocated $10 million to the reserve, a small portion of Texas’ $338 billion budget, yet supporters argue it marks an important step for the growing crypto industry.
Bitcoin prices have fluctuated significantly this year, peaking above $126,000 in October before dropping to around $85,000 recently. The state’s purchase at roughly $87,000 per bitcoin reflects ongoing market volatility.
Advocates see the investment as forward-looking, citing potential long-term benefits in job creation, tax revenue, and digital asset adoption.
Critics remain sceptical, warning that public crypto investments carry high risk and may favour industry interests over taxpayers. Some economists criticised the move as conflicting with Texas’ conservative fiscal approach and risky government speculation.
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