CoinDesk reports that Texas has purchased $5 million worth of shares in BlackRock’s iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF). The investment, confirmed by a spokesman for the Texas Comptroller of Public Accounts, serves as a placeholder as the state continues working toward directly holding bitcoin in its own reserve.
The purchase comes after Texas passed legislation earlier this year, appropriating $10 million to fund the creation of a state-managed bitcoin stockpile, known as the Texas Strategic Bitcoin Reserve. As part of the process, Texas recently concluded an information-gathering phase, soliciting input from the crypto industry on best practices for implementing and managing such a reserve.
While Texas is not the first state entity to invest government funds in a crypto-based ETF, with states like Michigan and Wisconsin having previously allocated pension fund money to similar investments, it marks a significant step toward a state directly holding and managing its own cryptocurrency reserve.
Texas’ move has positioned it at the forefront of the race among U.S. states to establish government-owned crypto stockpiles. Other states, including New Hampshire and Arizona, are also pursuing their own initiatives. New Hampshire, despite being the first to pass enabling legislation, is still in the planning stages. Arizona has taken steps to devote state-collected unclaimed crypto to building its reserve.
The push for state-based crypto reserves has gained momentum in the wake of calls by President Donald Trump for the federal government to make long-term cryptocurrency investments. However, the federal effort remains in the early stages, with officials awaiting Congressional action to provide formal powers to back the initiative.
Despite the recent market downturn, advocates believe the current “drawdown” is not significant enough to deter lawmakers’ interest. Lee Bratcher, president of the Texas Blockchain Council, praised Texas for “buying the dip,” securing its bitcoin ETF stake at an attractive $87,000 price point.
Read more at CoinDesk here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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