- Texas disclosed purchasing $5 million worth of spot Bitcoin ETFs on November 20 as BTC traded at an average of $87K.
- The funding came from the $10 million allocation from the state’s general revenue.
- Its BTC exposure was via its acquisition of BlackRock’s IBIT ETF shares.
Five months after Texas enacted its Strategic Bitcoin Reserve into law, the Lone Star State finally made its big move into Bitcoin (BTC). According to Lee Bratcher, Founder and President of the Texas Blockchain Council, it has become the first state in the US to fill up its Strategic Bitcoin Reserve through active purchase.
Texas’ comptroller tapped into the $10 million allocation under the state’s general revenue to acquire $5 million worth of spot Bitcoin exchange-traded fund (ETF) shares on November 20.
Purchase Executed as BTC Averaged $87K
Interestingly, Texas timed the transaction as the market dipped to a seven-month low at around $80K per BTC on November 20. He didn’t mention the exact amount of ETF shares the state acquired from the multi-million purchase, but he claimed that it snapped the funds while Bitcoin was trading at an average of $87K.
Bratcher credited the Texas government’s successful Bitcoin purchase to the efforts of Kelly Hancock, Acting Texas Comptroller of Public Accounts, and the Texas Treasury’s dedicated investments team.
Texas secured its latest exposure to Bitcoin via BlackRock’s iShares Bitcoin Trust ETF (IBIT). The investment product notably closed at around $48.96 per share during the period.
The Texas Blockchain Council senior official pointed out that Texas will eventually self-custody Bitcoin. So, while the request for proposal (RFP) is in process, IBIT will serve as a placeholder for its BTC exposure.
A Bold Move
True to its cowboy culture, Texas made the bold acquisition as IBIT posted net outflows of $355.5 million on the 20th. Meanwhile, the ETF market logged $903.2 million in total net outflows over the same timeline. This meant it bought into the investment product amid the heavy sell pressure and FUD gripping the crypto market.
As of market close yesterday, BlackRock’s Bitcoin ETF recovered to $83 million in net inflows. This significantly contributed to the $128.7 million in total net inflows during the timeframe.
Bratcher strongly advocated for the passage of the Texas Strategic Bitcoin Reserve during its legislative phase until its signing into law by Governor Greg Abbott. The state’s advance into BTC follows New Hampshire and Arizona’s creation of a Strategic Bitcoin Reserve.
