Bitcoin Updates: Texas Adds Digital Gold to State Reserves, Leading the Way in Crypto Protection

Texas Commits $5 Million to

via ETF, Setting a Precedent for State Crypto Reserves

Texas has made history as the first state in the U.S. to dedicate public funds to a Bitcoin reserve,

through BlackRock’s (IBIT) on November 20, 2025, as reported by Lee Bratcher, president of the Texas Blockchain Council. This purchase, at an average rate of $87,000 per Bitcoin, in Texas’s efforts to diversify its financial reserves and protect against inflation.

The transaction was completed using

, a regulated ETF, while the state finalizes its plans for direct management of its Bitcoin assets. in June 2025, allocating $10 million to establish the Texas Strategic Bitcoin Reserve—an initiative that puts Texas at the forefront of state-level crypto policy. The comptroller’s office clarified that the IBIT investment is a temporary measure until a custodian is selected, .

This move is consistent with Texas’s supportive approach to cryptocurrency, which includes incentives for blockchain development and a regulatory environment aimed at attracting digital asset companies.

now includes Bitcoin alongside gold and U.S. Treasuries, seeking to benefit from Bitcoin’s potential as a long-term asset. was intended to take advantage of a market downturn, with Bitcoin trading 30% below its record high of over $120,000.

As more institutions embrace Bitcoin,

regarding its short-term price outlook. According to CryptoQuant analysts, while both small and large whale investors (100–1,000 BTC and over 10,000 BTC) are accumulating, mid-tier holders (1,000–10,000 BTC) are still net sellers, which may postpone a full recovery above $92,000. has led to a 2% increase in Bitcoin ETF inflows since the announcement.

Texas is not the only state pursuing crypto initiatives.

in municipal bonds backed by Bitcoin, while Arizona and Michigan are considering similar plans. has tripled its IBIT holdings to $442.8 million, signaling growing institutional trust in regulated Bitcoin products. Still, Texas stands out by directly using taxpayer funds to build a reserve, distinguishing itself as a pioneer in public crypto adoption .

Some critics warn that Bitcoin’s price swings could pose challenges for long-term budgeting. Supporters, however, believe that Texas’s diversified investments and cold storage requirements help reduce these risks.

, a group promoting blockchain progress, has helped make Texas a leader in digital asset policy, taking advantage of its regulatory flexibility and energy resources.

With $5 million still available in its budget, Texas intends to further grow its Bitcoin reserve over the next few years. The state’s experience—whether successful or not—may influence other governments considering digital asset investments, potentially changing how public institutions approach cryptocurrencies. As Bratcher remarked, “Texas is demonstrating that Bitcoin can be integrated with traditional reserves, providing a new option for economic stability in uncertain times”

.