State Strategic Bitcoin Reserve Advances
Texas has made a significant move toward establishing a state-level Bitcoin reserve by acquiring $5 million worth of BlackRock’s iShares Bitcoin Trust (IBIT). This investment is a crucial part of a larger strategy as officials work to finalize a long-term plan for the direct self-custody of Bitcoin under the Texas Strategic Bitcoin Reserve.
The Texas Strategic Bitcoin Reserve was established earlier this year when the governor signed the necessary legislation in June. This initiative emerged from efforts to design reserve plans that would not utilize taxpayer funds. State leaders opted for an Exchange Traded Fund (ETF) route while the framework for direct custody is under development.
According to officials, the state's ultimate intention is to self-custody Bitcoin once the procurement process is complete. Lee Bratcher, President of the Texas Blockchain Council, stated, "Texas will eventually self-custody bitcoin. But while that RFP process takes place, this initial allocation was made with BlackRock’s IBIT ETF."
The Texas Blockchain Council, which includes over 100 member companies, is dedicated to positioning Texas as a leading hub for Bitcoin and blockchain technology. Bratcher also played a role in assisting lawmakers during the development of the reserve bill in the state Senate.
Institutional Investors Increase ETF Holdings
Institutional investors have been rapidly expanding their Bitcoin ETF positions. Notably, Harvard University’s endowment has tripled its IBIT holdings, reaching $442.8 million, making it their largest publicly disclosed investment. Emory University has also increased its exposure to Bitcoin ETFs. In parallel, Abu Dhabi’s Al Warda Investments made substantial additions during the same period.
These actions highlight a growing institutional comfort level with Bitcoin exposure through ETFs. They also place Texas among other large investors utilizing Bitcoin ETFs as a transitional strategy while preparing for direct custody. ETF structures provide regulated access for entities as they prepare for long-term vaulting strategies.
This trend raises an important question: Will more states follow this approach, using ETF holdings as a bridge to direct ownership of spot Bitcoin?
Other States Exploring Crypto Reserve Proposals
New Hampshire and Arizona are actively developing their own reserve plans. New Hampshire state Representative Keith Ammon indicated that while "no moves have been made as of today," the state has authorized a $100 million Bitcoin bond through the New Hampshire Business Finance Authority. This project, led by the private sector, aims to support a crypto-backed economic development fund.
Some states have already established crypto ETF positions within their retirement funds, distinct from sovereign reserves. While these investments are tied to retirement systems, they still demonstrate public-sector interest in regulated Bitcoin exposure.
Dennis Porter, CEO of the Satoshi Action Fund, mentioned that his organization offers legislative templates to state governments. He described their strategy as meeting lawmakers "where they’re at," focusing on incremental progress rather than immediate, widespread adoption.
Porter anticipates an increase in legislative activity early next year. He noted that many states are planning to reintroduce reserve proposals, including those in Michigan and Massachusetts, as their legislative sessions reopen.