- Texas is getting ready to move its $10 million Strategic Bitcoin Reserve from BlackRock’s iShares Bitcoin Trust (IBIT) ETF to direct Bitcoin (BTC) custody, demonstrating a greater dedication to onchain ownership.
- In order to safely acquire, maintain, and report its Bitcoin holdings while providing space for future cryptocurrency investments, the state is looking for a custody and liquidity provider.
- Within 60 days of entering into a contract, Texas intends to convert its current holdings in IBIT ETFs into directly held Bitcoin.
Is Texas About to Trigger a New Bitcoin Trend by Moving $10M From BlackRock ETF to Direct BTC? According to a state procurement document, Texas is looking for a custody and liquidity provider to assist in transferring its Strategic Bitcoin Reserve from BlackRock’s iShares Bitcoin Trust (IBIT) spot Bitcoin exchange-traded fund (ETF) into directly owned coins.
The action, which was posted on May 7 and made public by the Texas Comptroller’s office on Thursday, would bring Texas closer to directly owned Bitcoin through a third-party custody arrangement as opposed to depending just on ETF exposure, signifying a change from ETF exposure to direct onchain ownership.
According to the request for proposals document, Texas has set aside $10 million for the Strategic Bitcoin Reserve, which it has used to purchase IBIT as a temporary means of holding the money before switching to directly custodied Bitcoin.
Texas Plans 60 Day Shift From IBIT ETF To Direct Bitcoin Holdings
The winning company will be in charge of purchasing, holding, administering, and reporting the state’s Bitcoin and any other eligible cryptocurrency holdings, according to the Comptroller’s office, with the possibility of eventually acquiring assets other than BTC.
The mandate includes a transition plan that would convert current IBIT holdings into directly custodied Bitcoin within 60 days of contract signing, secure custody of digital assets in the State of Texas’ name, and liquidity services to assist purchases and trades.
Beyond simple safekeeping, the RFP calls for institutional-grade security controls, both standard and customized reporting, and a dedicated public website that displays the quantity and value of Bitcoin and other qualifying cryptocurrencies held by the reserve.
Will Texas’s Bitcoin Strategy Make BTC A Long-term Inflation Hedge?
Acting Comptroller Kelly Hancock announced the members of the Texas Strategic Bitcoin Reserve Advisory Committee in a statement that emphasized the call for proposals.
Laurie Dotter, a seasoned investment executive, Jamie McAvity, the founder and CEO of Cormint Data Systems, Carla Reyes, a law professor and expert on digital assets at Southern Methodist University, and Gary Vecchiarelli, president and chief financial officer of CleanSpark, are among the panelists.
The committee’s duties include providing advice on how the reserve is managed, including custody agreements, risk management, how the state reports its assets and performance to the public and legislators, and more general administration of the reserve’s investment strategy.
Bitcoin and possibly other large-cap cryptocurrencies have been promoted by proponents of the law that established the reserve as a strategic asset that can serve as a long-term hedge against inflation and economic turbulence.
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