Texas Moves State‑Backed Bitcoin Reserve into Direct Custody
Texas has taken a decisive step to transition its state‑backed Bitcoin reserve from exposure through the BlackRock iShares Bitcoin Trust (IBIT) into directly held cryptocurrency. The move was announced on May 29 2026 and is being executed under the direction of Acting Comptroller Kelly Ahncock, who also appointed an advisory committee to oversee the transition.
Advisory Committee Formation
On May 29 2026, the Texas Comptroller announced that five individuals had been selected to advise the Strategic Bitcoin Reserve. Among the appointees is the Chief Financial Officer of CleanSpark, a company known for its energy‑efficiency solutions. The committee’s mandate is to guide the reserve’s operations, including acquisition, sale, and ongoing management of the holdings.
Shift from ETF to Direct Custody
Previously, Texas had invested in a spot Bitcoin ETF (IBIT) as a temporary holding mechanism while the state developed a long‑term strategy. The latest announcement confirms that the state will move the $10 million worth of IBIT into directly custodied Bitcoin. A request for proposals was issued on May 7 to secure a custody and liquidity provider capable of handling the full lifecycle of the reserve—including acquisitions, sales, and reporting.
Acquisition Expansion
In parallel with the custody transition, Texas has expanded its Bitcoin acquisitions for the strategic reserve. The expansion is intended to increase the reserve’s holdings and to provide a more robust framework for state‑level digital asset management. This action may serve as a precedent for other states that are evaluating public investment in cryptocurrencies.
Implications for State Policy
Texas’s decision to hold Bitcoin directly, rather than via an ETF, is expected to influence energy policy, regulatory frameworks, and public investment strategies in other jurisdictions. The state’s approach, which includes a publicly visible real‑time holdings dashboard, introduces a level of transparency uncommon among institutional holders of digital assets.
Market Context
As of the close on May 29 2026, the price of the Strategic Bitcoin Reserve was $0.0198701 per unit. The asset reached a 52‑week high of $0.119104 on July 29 2025 and a 52‑week low of $0.0158378 on April 17 2026, reflecting significant price volatility during the period.
This development marks a notable shift in how a U.S. state manages its cryptocurrency holdings, moving from a passive ETF position to active, direct custody of Bitcoin.
