Texas Starts Buying Bitcoin: ETF and Self-Custody Purchases Begin
By investing $5 million in shares of BlackRock’s spot Bitcoin ETF, the Texas state government has made a significant Bitcoin move. Additionally, an additional $5 million has been allocated for the purchase of self-custodied Bitcoin. On November 20, the purchase was made by the government. Texas Blockchain Council Chairman Lee Bratcher announced X on Tuesday. According to Bratcher, Bitcoin will eventually be self-custodied by the Texas government.
$10M is allocated from general revenue but not all $10M has been allocated,
Bratcher
Texas Moves Toward Bitcoin Reserve With State-Backed Treasury
This action may or may not be directly connected to the state’s proposal for a strategic Bitcoin reserve. Governor Gregg Abbott formally approved the establishment of a state-managed fund in June to keep Bitcoin as part of Texas’s long-term financial assets. The state will construct this Bitcoin-backed treasury using public funds. According to the initial bill that Abbott passed, the reserve can only contain assets with a market capitalization of more than $500 billion. BlackRock’s IBIT is not eligible for this criterion, but Bitcoin is. Still, the action is a positive step toward Texas’s aspirations to accept Bitcoin.
Texas Eyes Ethereum for Strategic Crypto Reserve Next
Texas’s ambitions for Bitcoin are moving forward, but it might go beyond digital gold. According to Texas State Senator Charles Schwertner, Ether could be the next step. He is one of the politicians behind the state’s strategic Bitcoin reserve measure and made this claim in mid-October. But for this to happen, ETH’s market capitalization would need to surpass $500 billion and stay there.
If Ethereum maintains its market cap over 24 months, I think it’s reasonable and prudent to give direction that Ethereum could be added to the cryptocurrency [reserve],
Schwertner
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