Texas has become one of the first states to buy cryptocurrency with a $5 million stake in an exchange-traded fund pegged to bitcoin.
The purchase follows enactment of S.B. 21, a bill Republican Gov. Greg Abbott (R) signed into law earlier this year that authorizes a so-called Strategic Bitcoin Reserve, to which the Legislature directed $10 million.
The purchase, first reported by The Dallas Morning News, is relatively small; the state’s rainy day fund is about $28 billion. But Republican leaders hope it will send a signal that the state wants to attract crypto miners to Texas, already one of the world’s crypto hot spots.
“The strong interest we’re seeing from industry leaders shows just how significant this effort is,” acting Texas Comptroller Kelly Hancock said in a statement.
