Texas purchases $5 million worth of IBIT, Bitcoin Reserve Program officially launches

Texas has become the first U.S. state government to launch a Bitcoin reserve system. According to reports from PA News and The Block, based on an announcement by the Texas Blockchain Council, the state executed its first allocation to purchase approximately $5 million worth of BlackRock’s Bitcoin Spot ETF (IBIT). This move marks the first practical implementation of the new system created by SB21, enacted by Governor Greg Abbott in June of last year.

First Allocation Under SB21

This innovative program introduced by Texas establishes a framework for managing state-level Bitcoin reserves under the operation of the Texas Trust Company. SB21 is not merely a standard investment authorization; it represents a historic first step for a state government in the U.S. holding Bitcoin.

According to Lee Bratcher, Chairman of the Texas Blockchain Council, who revealed on Twitter, this purchase was executed on November 20, 2025. The initial allocation of $5 million constitutes a part of the annual Bitcoin allocation cap of $1 billion.

Strategic Significance of BlackRock IBIT Investment

Texas’s choice of BlackRock’s IBIT carries more than just an investment decision. BlackRock’s recognition and credibility have made Bitcoin investments more accessible to institutional investors. The indirect approach of holding Bitcoin through a spot ETF could serve as a reference for other state governments, balancing regulatory risk management with actual asset holdings.

This investment signifies not just market entry but the arrival of an era where cryptocurrencies are incorporated into government financial strategies as part of a portfolio.

Positioning and Future Outlook

The latest 13F report from the Texas Trust Company reveals its existing investment composition. The company held approximately $667 million in S&P 500 ETF (SPY) and about $34 million in Janus Henderson-related funds. With this $5 million IBIT purchase, Bitcoin-related assets will become the third-largest holding in the portfolio.

This is more than a simple asset reallocation; it suggests the potential for future expansion of Bitcoin allocations by Texas. The absence of an official confirmation document from authorities indicates a cautious approach, but the existence of a $1 billion annual cap leaves room for phased increases in the future.

Texas’s Bitcoin reserve program could serve as a new model for public sector cryptocurrency strategies in the U.S., potentially pioneering similar initiatives at the state and local government levels.