Peter Zhang
Could 29, 2026 11:21
Texas plans to shift its $10M Bitcoin reserve from BlackRock’s ETF to direct BTC custody, searching for larger management and transparency.
Texas is getting ready to transition its $10 million Strategic Bitcoin Reserve from BlackRock’s iShares Bitcoin Belief (IBIT) ETF to immediately held Bitcoin, in keeping with a state request for proposals (RFP). The transfer alerts the state’s intent to realize larger management over its Bitcoin holdings and marks a step towards constructing a state-level crypto infrastructure.
The RFP, issued on Could 7, outlines plans for a third-party custody supplier to deal with safe storage, liquidity, and reporting for the state’s Bitcoin and any potential future cryptocurrency holdings. The transition is anticipated to be accomplished inside 60 days of finalizing the contract, shifting Texas from ETF publicity to direct on-chain possession.
Presently, Bitcoin is buying and selling at $73,538 as of Could 29, 2026, up 0.33% within the final 24 hours. Texas’ choice to exit the ETF construction displays a broader pattern amongst Bitcoin advocates who favor direct possession to attenuate counterparty dangers and guarantee transparency. The state initially bought $5 million in Bitcoin by way of IBIT in November 2025 at roughly $87,000 per coin, later doubling its allocation to $10 million.
Broadening Scope Past Bitcoin
Whereas Bitcoin stays the reserve’s main focus, the RFP leaves the door open for extra large-cap cryptocurrencies that meet eligibility requirements. Below the legislation that established the reserve, qualifying belongings should have a minimal common market capitalization of $500 billion over 24 months—a bar solely Bitcoin cleared when the laws handed in mid-2025.
The custodian chosen won’t solely oversee safe storage but additionally present institutional-grade safety controls, liquidity providers for purchases and gross sales, and public reporting. A devoted web site will show real-time holdings and valuations, providing transparency for lawmakers and the general public.
Strategic Bitcoin Reserve Advisory Committee
On Could 28, Appearing Texas Comptroller Kelly Hancock unveiled a five-member Strategic Bitcoin Reserve Advisory Committee to information the reserve’s operations. Members embody Laurie Dotter, a seasoned funding government, and Carla Reyes, a authorized scholar specializing in digital belongings. The committee will advise on custody, threat administration, and funding methods.
Texas established the reserve by way of Senate Invoice 21 (SB 21), signed into legislation in June 2025. The laws positioned Bitcoin as a strategic asset to hedge towards inflation and financial volatility, aligning with the state’s broader push to embrace cryptocurrency innovation. Texas grew to become the third state to undertake a Bitcoin reserve after Arizona and New Hampshire.
Implications for the Market
Texas’ choice is critical for each Bitcoin adoption and state-level crypto coverage. By transferring to direct custody, Texas eliminates ETF administration charges and positive factors full management over its holdings, aligning with Bitcoin’s ethos of self-sovereignty. With $10 million allotted, the reserve’s dimension is modest relative to Bitcoin’s $1.45 trillion market cap, nevertheless it alerts rising institutional and governmental curiosity in direct crypto possession.
As different states monitor Texas’ method, the success of this initiative might set a precedent for integrating cryptocurrencies into public monetary methods. Merchants and long-term traders could view this as a bullish sign for Bitcoin, reinforcing its legitimacy as a retailer of worth in unsure financial situations.
Trying forward, the RFP course of is anticipated to conclude quickly, with the transition to direct Bitcoin custody possible finalized by mid-summer 2026. With Bitcoin’s worth up almost 33% year-to-date, Texas’ transfer might be well-timed to capitalize on the asset’s continued development.
Picture supply: Shutterstock
