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Key Takeaways
Texas Did Not Add to Its Q2 Position
The Texas Treasury Safekeeping Trust Company’s Q2 Form 13F information table lists 197,844 shares of BlackRock’s iShares Bitcoin Trust ETF, or IBIT. Its amended Q1 filing reports the same number.
The matching share counts confirm an unchanged position on the two reporting dates, not a complete trading history. Form 13F captures quarter-end holdings, so it cannot rule out sales and repurchases between them.
The lack of a quarter-end change came during a 13.25% Bitcoin decline, from $68,129.64 on March 31 to $59,101.49 on June 30, according to IBIT’s quarterly report.
The Filing’s $7.602 Million Value Does Not Match the Fund
BlackRock reported a June 30 net asset value of $33.48 per IBIT share. At that price, Texas’s 197,844 shares were worth $6,623,817.
Using the March 31 NAV of $38.62 puts the same shares at $7,640,735. The quarterly decline was therefore approximately $1.02 million, or 13.31%, in line with the drop in IBIT’s NAV.
Texas’s Q2 information table nevertheless repeats the $7.602 million value shown in its amended Q1 filing. That number was close to the position’s first-quarter value but almost $1 million above the result produced by BlackRock’s June 30 NAV. The filing does not explain the discrepancy, so the share count and the fund’s published NAV provide the more reliable quarter-end estimate.
The state’s procurement record says $10 million was used to acquire IBIT. If that entire amount corresponds to the 197,844 reported shares, the implied acquisition cost was about $50.54 per share. The June 30 value would then be approximately $3.38 million lower, a 33.8% paper decline.
This is a calculation from the disclosed allocation and share count, not a cost basis reported in the 13F.IBIT Is a Temporary Holding
Texas’s official request for custody and liquidity services says the $10 million allocated to the Strategic Bitcoin Reserve was used to acquire IBIT as an interim measure. The stated objective is to move the reserve from ETF shares to direct Bitcoin holdings once the custody system is ready.
That planned conversion changes how the next filing should be read. A smaller IBIT position could mean Texas reduced its exposure, or it could mean the state sold ETF shares to buy Bitcoin directly. The ETF filing alone will not distinguish between those outcomes.
The procurement timetable anticipates contract execution on August 28 and commencement of work on August 31. Those dates are targets rather than guarantees. The selected provider would then be expected to implement the reserve within 60 days of contract execution.
Direct Custody Replaces One Set of Risks With Another
IBIT gives Texas economic exposure through a regulated security. Direct custody would place Bitcoin in accounts held in the state’s name, with the assets kept separate from those of other clients. The procurement document also requires controls covering private-key generation, cold storage, access permissions, security testing and transaction approval.
Moving out of the ETF would remove IBIT’s 0.25% annual sponsor fee. It would also give Texas responsibility for custody oversight, cybersecurity and transaction controls. Direct ownership may not be cheaper once provider fees and operating costs are included; the final contract terms have not been disclosed.
At June 30 prices, the IBIT position represented approximately 112.1 BTC of economic exposure. Texas did not own that amount in a state-controlled wallet. The calculation simply divides the $6.62 million position value by BlackRock’s reported Bitcoin price of $59,101.49. The amount eventually acquired will depend on the ETF sale price, Bitcoin’s price, fees and execution timing.
Texas’s Stake Is Small Next to Abu Dhabi’s
Two Abu Dhabi investment entities reported a combined 22,940,629 IBIT shares at June 30. Our review of the filings placed their combined reported value at approximately $763.7 million.
That share count was nearly 116 times larger than Texas’s. The Texas position amounted to about 0.86% of the combined Abu Dhabi stake.
The comparison puts Texas’s market impact in perspective. Its stake is small, but its mandate is different: the state is building a public reserve and plans to move beyond the ETF wrapper.
The Next Disclosure Matters More Than This One
The custody award, provider identity and implementation schedule will show whether the August targets remain intact. After that, the useful comparison will be between any reduction in IBIT shares and the amount of Bitcoin transferred into the reserve.
Texas law requires the comptroller to publish and submit a biennial report by December 31 of each even-numbered year. It must disclose the amount and estimated value of cryptocurrency held, changes during the holding period and the state’s management actions.
Maintaining the ETF position was the easy part. The harder test is carrying out the conversion and publicly accounting for the sale price, fees, custodian and final amount of Bitcoin received.
Form 13F reports provide quarter-end snapshots and do not disclose every transaction, cost basis or offsetting position. Calculations in this article use the reported share counts and BlackRock’s published net asset values. This article is for informational purposes only and does not constitute investment advice.
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