The reported first five million dollar allocation to Texas’s state managed Bitcoin reserve has drawn significant attention across the crypto market.
Texas’s long planned state administered Bitcoin reserve initiative has returned to the spotlight following new information shared by the Texas Blockchain Council. According to the group, the state executed its first allocation last week by purchasing roughly five million dollars worth of Bitcoin through IBIT. If confirmed, this would mark the first time in US history that a state adds Bitcoin to its official portfolio.
The SB 21 bill, signed into law in June, grants the state treasury the authority to consider Bitcoin as part of its long term asset strategies. Senator Charles Schwertner, one of the key architects of the bill, has frequently highlighted Bitcoin as one of the strongest performing assets of the past decade. Based on current reports, half of the ten million dollar budget allocated for the reserve may have already been deployed.
Texas Blockchain Council president Lee Bratcher stated that the reported November 20 transaction represents both the first allocation to the reserve and potentially the first Bitcoin purchase ever made by a US state. While the Texas Treasury has yet to issue confirmation, the move could open the door for broader crypto adoption at the state level.
The timing also aligns with growing institutional interest in Bitcoin ETFs. Earlier this month, an Abu Dhabi sovereign fund increased its IBIT exposure, while Harvard University disclosed holding around seven million IBIT shares as of September 30. Bloomberg senior analyst Eric Balchunas described the convergence of Texas, Abu Dhabi and Harvard in the same ETF as highly unusual.
If verified, Texas’s step into Bitcoin reserves could set a precedent for other states exploring digital assets as part of their long term financial strategies.
