Texas Bitcoin Reserve First Allocation: $5M IBIT Buy

State-level interest in digital assets continues to expand as the texas bitcoin reserve reportedly executes its first allocation.

Did Texas just complete the first state bitcoin buy?

Texas may have taken the early lead in the emerging race to put bitcoin directly on U.S. state balance sheets. According to posts from the Texas Blockchain Council, the state executed its first allocation to the Texas Strategic Bitcoin Reserve last week.

The council indicated that officials bought roughly $5 million worth of BlackRock‘s spot bitcoin ETF, IBIT. Moreover, the move would represent the first time the state has deployed capital specifically earmarked for bitcoin under new legislation.

How does SB 21 structure the Texas bitcoin strategy?

The reported transaction appears to mark the initial deployment of funds authorized under SB 21. Governor Greg Abbott signed the law in June, creating a state-managed bitcoin reserve operated by the Texas Treasury Safekeeping Trust Company.

Under SB 21, lawmakers approved a $10 million budget allocation for bitcoin, with the reported $5 million trade seen as the first leg of that strategy. However, the full amount has not yet been deployed, leaving further room for additional purchases if officials choose to proceed.

Backers of SB 21 framed the reserve as a way for Texas to treat bitcoin like other long-term assets held for the state. Bill author Sen. Charles Schwertner said earlier this year that Texas “should have the option of evaluating the best performing asset over the last 10 years,” pointing to bitcoin’s extended run of strong returns.

What do we know about the reported IBIT purchase?

Lee Bratcher, president of the Texas Blockchain Council, posted on social platform X that the purchase took place on Nov. 20. He described it as both the reserve’s first allocation and, notably, the first direct bitcoin-related buy by any U.S. state.

That said, Texas officials have not yet released public documentation or formal comments confirming the trade. The Block contacted Texas Treasurer Kelly Hancock, who oversees the reserve, as well as Bratcher, but had not received a response at the time of writing.

If confirmed, the transaction would mean the state used part of its approved allocation to acquire shares of IBIT for the treasury trust. In doing so, the words texas bitcoin reserve effectively move from statute to the level of an operational investment position.

How is the Texas Treasury Safekeeping Trust Company currently invested?

As of its most recent Form 13F filing, the Texas Treasury Safekeeping Trust Company reported holdings of about $667 million in SPY. In addition, it disclosed roughly $34 million in a Janus Henderson fund, giving the state broad equity market and active management exposure.

If Bratcher’s description of the IBIT trade is accurate, a $5 million allocation to the BlackRock fund, as part of the broader $10 million bitcoin mandate, would become the third listed position in that portfolio. Moreover, it would be the only dedicated digital asset exposure within the trust’s traditional holdings.

Who else is buying IBIT on the institutional side?

This month, an Abu Dhabi sovereign wealth fund reportedly added to its IBIT position, signaling continued institutional interest in the spot bitcoin ETF. At the same time, Harvard disclosed that it held nearly seven million shares of IBIT as of Sept. 30, making it the university’s largest declared U.S. holding.

Bloomberg senior ETF analyst Eric Balchunas highlighted the unusual mix of owners on Tuesday in a post on X. “Pretty sure that’s the only ETF to ever be owned by all three. More wild stuff for a not-yet-even-two-years-old fund,” he wrote, referring to Texas, Harvard and the Abu Dhabi vehicle.

What does this mean for bitcoin on public balance sheets?

If Texas formally confirms the IBIT purchase, it would underscore the shifting perception of bitcoin among public institutions. A state-level treasury adding a bitcoin-linked ETF, even in a modest $5 million size, could encourage others to study similar moves.

For now, the reported Texas trade remains an early test case. However, with SB 21 in place and a $10 million mandate authorized, further activity from the Lone Star State could shape how other jurisdictions approach bitcoin as a long-term strategic asset.

In summary, Texas appears to have taken a first, relatively small step toward integrating bitcoin exposure into its official trust portfolio, potentially setting a precedent for other states watching the performance and political reception of this new reserve strategy.