Texas Shifts Bitcoin Reserve Strategy from ETF to Direct Custody
- Texas has allocated $10 million to its Strategic Bitcoin Reserve, transitioning from ETF exposure to direct Bitcoin custody.
- The state plans to acquire and manage directly held Bitcoin through a third-party custody arrangement.
- A Request for Proposals (RFP) mandates secure custody, liquidity services, and a public reporting website for the reserve’s holdings.
- The transition plan aims to shift existing IBIT holdings into directly custodied Bitcoin within 60 days of contract execution.
- Advisory Committee members include investment executives and legal scholars tasked with overseeing the reserve’s management and governance.
This strategic move reflects Texas’s aim to treat Bitcoin as a hedge against inflation and economic volatility, expanding potential cryptocurrency holdings beyond BTC in the future.
With a $10 million investment in the Strategic Bitcoin Reserve, Texas is set to enhance its cryptocurrency strategy by moving towards direct ownership of digital assets.(Source)
