Texas is now taking complete control of its Bitcoin strategy. After the state is preparing to move its $10 million Strategic Bitcoin Reserve from BlackRock’s Bitcoin ETF into directly held Bitcoin, signaling a shift from traditional ETF exposure to full on-chain ownership.
The move comes as Texas builds the infrastructure needed to manage and secure its own Bitcoin holdings.
State officials are now seeking a crypto custody and liquidity provider to acquire, store, manage, and report on the reserve’s digital assets, marking one of the most significant state-level Bitcoin initiatives in the United States.
Texas Moving Away From BlackRock’s Bitcoin ETF?
According to a state request for proposals (RFP), Texas initially used IBIT as an interim solution to gain Bitcoin exposure while the reserve was being established.
Now, the state wants to convert those holdings into directly owned Bitcoin held through a third-party custody arrangement.
The selected provider will be responsible for securely storing Bitcoin in the name of the State of Texas, managing liquidity for purchases and sales, and overseeing the transition from IBIT into spot Bitcoin. The conversion process must be completed within 60 days after the contract is awarded.
The change gives Texas direct ownership of Bitcoin rather than exposure through ETF shares, allowing the state greater control over how its digital assets are managed.
Who Will Oversee The Texas Bitcoin Reserve?
The move comes shortly after Acting Texas Comptroller Kelly Hancock announced members of the Texas Strategic Bitcoin Reserve Advisory Committee.
Created under Senate Bill 21, the five-member committee will advise the state on custody policies, risk management, digital asset valuation, and reserve operations.
The committee includes investment executive Laurie Dotter, Cormint Data Systems CEO Jamie McAvity, Southern Methodist University law professor Carla Reyes, and CleanSpark President and CFO Gary Vecchiarelli.
Hancock said the reserve must be managed with transparency, security, and strong financial controls to protect Texas taxpayers.
Texas Builds Institutional-Grade Bitcoin Reserve
The state’s requirements go beyond basic custody services. Texas wants institutional-grade security controls, detailed reporting systems, and a public website that displays reserve holdings and their market value.
The proposal also leaves room for the reserve to hold other qualifying cryptocurrencies in the future, although Bitcoin remains the primary focus today.
Supporters of the reserve argue that Bitcoin can serve as a long-term hedge against inflation and economic uncertainty.
If Texas completes the transition, it could become one of the first U.S. states to move from ETF-based Bitcoin exposure to direct ownership and custody of BTC, potentially setting a model for other state governments considering similar digital asset reserves.
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