Bitcoin News Update: Texas Creates Inaugural State Bitcoin Reserve, Setting the Stage for Institutional Embrace

Texas has dedicated $10 million to create a state-run

reserve, splitting the funds between a $5 million investment in BlackRock’s (IBIT) as a provisional step, and another $5 million earmarked for direct Bitcoin purchases under state custody once the necessary infrastructure is ready . This initiative, revealed by the Texas Blockchain Council, represents a significant milestone in Texas’ broader strategy to adopt cryptocurrency as a reserve asset. The reserve was authorized by Governor Greg Abbott’s Senate Bill 21, passed in June, which mandates that reserve assets must have a market capitalization of at least $500 billion—a criterion Bitcoin satisfies, but BlackRock’s ETF does not. The temporary use of highlights Texas’ plan to eventually move to direct Bitcoin ownership, a path also being considered by states such as Wisconsin and New Hampshire, though Texas is the first to formally designate these holdings as a state reserve.

Texas’ investment comes as Bitcoin (BTC) is consolidating near a crucial weekly support range between $78,000 and $79,000. This zone has been identified by traders and analysts as a possible “invalidation” area: a sustained drop below could indicate a reversal of the prevailing upward trend, while a bounce would reinforce bullish sentiment. At present, BTC is trading close to $87,000, having recovered from a major decline from $130,000 and rebounding off a long-term ascending channel. According to Profit Blue, a trader reviewing the weekly Bybit chart, buyers have entered the market as prices reached the mid-$80,000s, helping to preserve the current uptrend structure.

The Texas initiative is part of a larger movement among institutions to embrace Bitcoin. Harvard University’s endowment recently revealed a $443 million investment in IBIT, while

in the ETF to $517.6 million. These developments reflect increasing trust in Bitcoin as a strategic asset, even as regulatory and market challenges persist. Texas’ plan for direct custody is in line with Governor Abbott’s goal to make the state a leader in crypto adoption. In September, Texas issued a request for information (RFI) to gather industry feedback on custody, security, and governance, with a formal request for proposals (RFP) expected in the near future.

This $10 million commitment also underscores the political and economic implications of state-level cryptocurrency reserves. Some critics warn that ETFs like IBIT carry counterparty risks, while supporters argue they provide a stepping stone to direct asset ownership. Texas’ strategy echoes ongoing federal debates, including proposals from former President Donald Trump for a national Bitcoin reserve, although such measures have yet to receive congressional approval. As states like Arizona and New Hampshire consider similar approaches, Texas’ actions could serve as a model for how governments address the challenges of cryptocurrency regulation and long-term asset stewardship.

At the same time, institutional adoption of Bitcoin is gaining momentum. Universities, sovereign wealth funds, and state governments are increasingly treating Bitcoin as a core reserve asset within their investment portfolios. The Texas Blockchain Council’s partnership with financial professionals and industry leaders highlights Bitcoin’s growing acceptance in mainstream finance. Despite ongoing regulatory uncertainty, the trend is unmistakable: digital assets are becoming a standard part of long-term investment strategies. As more states weigh their options, the real question is not whether governments will adopt Bitcoin, but rather when and in what manner it will be incorporated into public financial systems.