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Bitcoin Updates: Texas Bitcoin Holdings Indicate Growing Institutional Adoption as States Welcome Digital Assets

Bitcoin Updates: Texas Bitcoin Holdings Indicate Growing Institutional Adoption as States Welcome Digital Assets

Bitget-RWA2025/11/26 11:14
By:Bitget-RWA

- Texas becomes first U.S. state to allocate $10M for a strategic Bitcoin reserve, initially investing $5M in BlackRock’s IBIT ETF as a temporary measure. - The state plans a second $5M direct Bitcoin purchase once custodial infrastructure is finalized, aligning with broader efforts to recognize Bitcoin as a long-term asset class. - Institutional adoption grows as Harvard and Abu Dhabi’s Al Warda also invest in IBIT, while BlackRock’s ETF sees a 10% year-to-date decline amid market volatility. - Experts hi

Texas has become the first state in the U.S. to dedicate public resources to a strategic

reserve, starting with a $5 million investment in BlackRock's (IBIT) as an interim step while it prepares the infrastructure needed for direct, self-managed Bitcoin storage. This acquisition, which was verified by the Texas Comptroller of Public Accounts and made public by Lee Bratcher, president of the Texas Blockchain Council, took place on November 20, at a time when following a notable drop from previous peaks above $120,000. The state’s $10 million commitment under the Texas Strategic Bitcoin Reserve and Investment Act includes another $5 million that will be allocated to direct Bitcoin holdings once custody systems are in place .

This initiative is part of a broader legislative push to recognize Bitcoin as a long-term asset for state reserves. Texas law stipulates that reserve assets must have a market cap of more than $500 billion, a criterion that Bitcoin currently satisfies but which

ETF does not meet for official reserve status .
Bitcoin Updates: Texas Bitcoin Holdings Indicate Growing Institutional Adoption as States Welcome Digital Assets image 0
The state has already begun a formal process to select a custodian for its direct Bitcoin holdings, following a request for information in September that gathered industry feedback on best practices for digital asset management .

Texas’s decision highlights the increasing institutional interest in Bitcoin. In addition to state-level investments, Harvard University and Abu Dhabi’s Al Warda Investments have also acquired IBIT shares, with

in the fund. At the same time, , trading at $49.56 per share as of late November. Texas’s move follows Wisconsin’s earlier $100 million IBIT investment in 2024 and New Hampshire’s legislative approval of a Bitcoin bond, though neither state has yet made a direct Bitcoin purchase .

Analysts emphasize the symbolic importance of Texas’s initiative.

, pointed out the dramatic change in government attitudes, shifting from considering bans to active involvement, calling it a sign of “Hyperbitcoinization.” Texas’s method also demonstrates a careful, phased approach: while the state plans to directly hold Bitcoin, it is currently using ETFs as a temporary solution until its own systems are ready. This approach is similar to federal discussions, for a national crypto reserve still pending Congressional approval.

Looking forward, Texas legislators have expressed willingness to broaden the reserve beyond Bitcoin. State Senator Charles Schwertner mentioned that

for two consecutive years. As states like Arizona and Michigan consider similar policies, and international investors such as Abu Dhabi increase their Bitcoin holdings, the U.S. seems ready for a surge in institutional adoption. Texas’s pioneering efforts, however, highlight the delicate balance between embracing innovation and maintaining regulatory oversight as states venture into the evolving world of digital asset management.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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