Texas’ Bitcoin reserve initiative under SB 21 signals a shift in how governments may approach digital assets and how it could influence the financial system at a macro level.
Texas became the first US state to add Bitcoin exposure to a state-managed investment portfolio by purchasing about $5 million of BlackRock’s IBIT ETF through its newly created Texas Strategic Bitcoin Reserve.
SB 21 shifted Texas from a crypto mining hub to an active digital asset investor. The bill authorizes the state comptroller to buy, hold and sell Bitcoin using a legislature-approved $10-million fund.
The initial allocation is small relative to Texas’ overall investment portfolio, which holds more than $667 million in S&P 500 ETFs. This signals a cautious and exploratory step.
