Peter Zhang
May 29, 2026 11:21
Texas plans to shift its $10M Bitcoin reserve from BlackRock’s ETF to direct BTC custody, seeking greater control and transparency.
Texas is preparing to transition its $10 million Strategic Bitcoin Reserve from BlackRock’s iShares Bitcoin Trust (IBIT) ETF to directly held Bitcoin, according to a state request for proposals (RFP). The move signals the state’s intent to gain greater control over its Bitcoin holdings and marks a step toward building a state-level crypto infrastructure.
The RFP, issued on May 7, outlines plans for a third-party custody provider to handle secure storage, liquidity, and reporting for the state’s Bitcoin and any potential future cryptocurrency holdings. The transition is expected to be completed within 60 days of finalizing the contract, shifting Texas from ETF exposure to direct on-chain ownership.
Currently, Bitcoin is trading at $73,538 as of May 29, 2026, up 0.33% in the last 24 hours. Texas’ decision to exit the ETF structure reflects a broader trend among Bitcoin advocates who favor direct ownership to minimize counterparty risks and ensure transparency. The state initially purchased $5 million in Bitcoin through IBIT in November 2025 at approximately $87,000 per coin, later doubling its allocation to $10 million.
Broadening Scope Beyond Bitcoin
While Bitcoin remains the reserve’s primary focus, the RFP leaves the door open for additional large-cap cryptocurrencies that meet eligibility standards. Under the law that established the reserve, qualifying assets must have a minimum average market capitalization of $500 billion over 24 months—a bar only Bitcoin cleared when the legislation passed in mid-2025.
The custodian chosen will not only oversee secure storage but also provide institutional-grade security controls, liquidity services for purchases and sales, and public reporting. A dedicated website will display real-time holdings and valuations, offering transparency for lawmakers and the public.
Strategic Bitcoin Reserve Advisory Committee
On May 28, Acting Texas Comptroller Kelly Hancock unveiled a five-member Strategic Bitcoin Reserve Advisory Committee to guide the reserve’s operations. Members include Laurie Dotter, a seasoned investment executive, and Carla Reyes, a legal scholar specializing in digital assets. The committee will advise on custody, risk management, and investment strategies.
Texas established the reserve through Senate Bill 21 (SB 21), signed into law in June 2025. The legislation positioned Bitcoin as a strategic asset to hedge against inflation and economic volatility, aligning with the state’s broader push to embrace cryptocurrency innovation. Texas became the third state to adopt a Bitcoin reserve after Arizona and New Hampshire.
Implications for the Market
Texas’ decision is significant for both Bitcoin adoption and state-level crypto policy. By moving to direct custody, Texas eliminates ETF management fees and gains full control over its holdings, aligning with Bitcoin’s ethos of self-sovereignty. With $10 million allocated, the reserve’s size is modest relative to Bitcoin’s $1.45 trillion market cap, but it signals growing institutional and governmental interest in direct crypto ownership.
As other states monitor Texas’ approach, the success of this initiative could set a precedent for integrating cryptocurrencies into public financial strategies. Traders and long-term investors may view this as a bullish signal for Bitcoin, reinforcing its legitimacy as a store of value in uncertain economic conditions.
Looking ahead, the RFP process is expected to conclude soon, with the transition to direct Bitcoin custody likely finalized by mid-summer 2026. With Bitcoin’s price up nearly 33% year-to-date, Texas’ move could be well-timed to capitalize on the asset’s continued growth.
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