Texas First U.S. State to Invest $10M in Bitcoin ETF
Texas has become the first U.S. state to invest in a Bitcoin ETF, allocating $10 million to the permanent school fund under House Bill 1234. On November 20, 2025, the Texas Comptroller purchased $5 million of BlackRock’s iShares Bitcoin Trust (IBIT) shares at around $87,000 per BTC, with the remaining $5 million reserved for future buys. Officials cited Bitcoin’s role as an inflation hedge and store of value alongside gold and U.S. Treasuries in the $60 billion portfolio supporting public education. The state plans to issue an RFP in early 2026 to transition to self-custody, using the ETF now for compliance and liquidity.
This landmark move underlines Texas’s pro-crypto stance and follows the earlier Texas Strategic Bitcoin Reserve and Investment Act. Following the announcement, Bitcoin ETF inflows rose 2%, signaling growing institutional demand. Market watchers expect Texas’s adoption of Bitcoin ETF to encourage other energy-producing states to consider digital assets as a balance-sheet tool.
Bullish
The Texas investment into a Bitcoin ETF is bullish for BTC. In the short term, the $5 million purchase and 2% rise in ETF inflows signal increased institutional demand, likely driving further trading activity and price support. Over the longer term, Texas’s plan to allocate another $5 million and transition to self-custody underscores a sustained state-level endorsement of Bitcoin as an inflation hedge. This precedent may prompt similar moves by other states, reinforcing Bitcoin’s legitimacy and underpinning upward pressure on market prices.