Texas has acquired $5 million in BlackRock’s bitcoin ETF as part of its initiative to establish the first state-level cryptocurrency reserve. This marks a significant step in the growing trend of U.S. states investing in digital assets, following previous actions by states such as Michigan and Wisconsin. The move reflects broader interest in leveraging blockchain technology for public finance management.
The purchase is part of a larger plan that includes developing a formal request for proposal to secure a custodian for the reserve. The initiative began when Texas moved past its deadline to evaluate industry best practices for managing such a reserve. This effort has involved input from various industry entities on the establishment and management of the reserve. The state’s comptroller’s office has taken the initial step by securing the $5 million investment, with plans to proceed to the next stages of its cryptocurrency reserve development.
Other states have also shown interest in investing in such funds. Michigan has been building such an investment, while Wisconsin sold its $350 million pension-fund stake in the BlackRock ETF in May. These actions indicate that while some states are committed to long-term investments in digital assets, others are assessing the risks and potential returns. The growing engagement of U.S. state governments in digital asset investments reflects a broader shift in how public entities are considering the integration of blockchain technology into financial planning and management.