Bitcoin being added to balance sheets is something that we discussed throughout the year. This was kicked off by the administration (U.S.) setting up a Strategic Reserve for crypto. It is a federal level program that did not include any funding from Congress.
What this means is anything that makes it into the reserve is accumulated through forfeiture or seizure. The US Government is not spending money on Bitcoin.
Many states have approached the idea of a crypto reserve. The results were mixed as some passed whereas others failed.
At the same time, the structure was varied depending upon what the state focused upon.
Texas is one state that went "all-in". They did not limit it like the Federal Government. Instead, they authorized the actual purchase.
The State of Texas Buys Bitcoin
After almost a year of discussion, there was the first purchase (that I am aware of) by a major state. In the past, we saw state pension funds investing in Bitcoin, usually through a vehicle similar to what Texas did.
However, this was a situation where public money was used to buy the asset.
Texas has moved public money into Bitcoin exposure, buying $5 million worth of shares in a regulated Bitcoin exchange-traded fund.
According to reports, the state’s purchase was made on November 20, 2025, and it used the BlackRock iShares Bitcoin Trust (IBIT) to gain price exposure without immediately holding the cryptocurrency itself.
The approach is no surprise. While the state did not directly invest in BTC, it did gain exposure. We are going to see many entities using the ETFs instead of messing with the digital asset itself. States and other government entities do not want to be responsible for custody.
Eventually, as more entities partake, this will push the demand for BTC. Blackrock and other ETF issuers can expand the offering by purchasing more BTC and share issuance.
Texas authorized $10 million in money. It is important to acknowledge that, proportionately speaking, this isn't a lot, either for the state or Bitcoin markets.
That said, the state could move into self-custody, something it is looking for feedback on.
According to state officials, the purchase is meant as a hedge and a way to diversify long-term holdings. An RFP process is expected to pick a custodian, with officials planning to transfer from ETF positions to direct custody once systems are ready. The request for proposals is slated for early 2026, based on public statements.
A Growing Trend?
With the carnage that is the crypto markets of late, everything is being question. However, does this mean that the interest in Bitcoin, along with other digital assets, is waning?
The answer is no.
Texas is the first of a number of states that are going to follow suit. We will see most every major entity involved at some point over the next 5 years. In this realm, few want to be the first.
However, as states, for example, start to show profits, others will join in. It is only a matter of time before the path Texas is forging is duplicated.
Will it set off FOMO? Not likely.
Governments move slow. Legislation is a process that can take months (years). Therefore, we will see this sprinkling out.
The move by Texas didn't turn many heads within crypto. It isn't going to affect the prices since it is nothing more than a drop in the daily volume.
What this does is send a clear message that governments are interested. This is being coupled by the fact many companies are starting to add BTC and ETH to its balance sheet. The treasury companies get the attention but there are others that are flying under the radar and not getting the headlines.
It is an evolutionary process. As more entities feel confident, the exposure to the asset class will grow.