Texas has appointed a four-member advisory committee to guide its Strategic Bitcoin Reserve, signaling a move away from ETF exposure toward direct custody of state-held bitcoin.
When Texas passed Senate Bill 21 last year, establishing a state-level Strategic Bitcoin Reserve, the question was never whether the state would hold bitcoin. It was how. Acting Comptroller Kelly Hancock answered part of that on May 28 by naming four members to the new Strategic Bitcoin Reserve Advisory Committee, a panel charged with steering the transition from BlackRock's IBIT exchange-traded fund to direct custody of actual bitcoin.
The state has moved with unusual speed. Senate Bill 21 was signed into law on June 22, 2025. In under a year, Texas has gone from legislation to a sitting advisory panel to a live procurement process for custody infrastructure. That pace signals this is not political theater. It is a functioning financial operation.
Hancock's four appointees reflect a deliberate mix of expertise. Laurie Dotter brings veteran investment management experience. Jamie McAvity, founder and chief executive of Cormint Data Systems, adds a builder's perspective from inside the bitcoin mining sector. Carla Reyes, a law professor at Southern Methodist University who specializes in digital assets, provides regulatory grounding. Gary Vecchiarelli, president and chief financial officer of CleanSpark, one of North America's largest publicly listed bitcoin miners, rounds out the group. Together they cover the custody, legal, and operational dimensions of holding state-level digital assets.
From ETF Wrapper to Actual Bitcoin
The immediate task is clear. Texas currently holds approximately $10 million in bitcoin exposure through IBIT, the iShares Bitcoin Trust managed by BlackRock. That ETF structure was always designed as a bridge, a way to establish the reserve quickly while the state built the infrastructure for direct custody. The advisory committee will now guide that transition, advising Hancock on valuation methodologies, risk management policies, and the selection of qualified custodians.
The procurement is already live. RFP number 908-26-1778WS closes June 15, with vendors competing to provide secure, state-grade bitcoin custody services. If a contract is executed on schedule, the actual migration from ETF shares to held bitcoin could begin as early as August 2026. The 60-day window after contract execution gives the winning custodian time to establish secure key management infrastructure to the state's specifications.
Why Direct Custody Matters
The distinction between owning an ETF and holding actual bitcoin is significant, and not merely philosophical. An ETF exposes the holder to counterparty risk and ongoing management fees. Direct custody means the state controls its own private keys, making the reserve independent of any financial intermediary. For a government entity holding bitcoin as a long-term reserve asset, direct custody is the cleaner structure.
It also mirrors what other institutional holders have concluded. Strategy, formerly MicroStrategy, has always held actual bitcoin rather than ETF proxies. Texas is following a path already validated by entities with significant stakes in the same conclusion: that genuine bitcoin exposure requires genuine bitcoin ownership.
The advisory committee structure itself is worth noting. By formalizing the governance layer before executing the custody transition, Texas has built an accountability mechanism that most early institutional bitcoin adopters skipped. Having a CFO from a major bitcoin miner and a digital asset law specialist at the table means the operational and legal risks of custody are being addressed before the keys exist, not after.
A Template for Other States
Texas is not alone in pursuing state-level bitcoin reserves, but it is moving faster and more deliberately than most. Several other states have passed or proposed similar legislation, but few have progressed beyond the bill-signing stage to active infrastructure procurement. The committee model Texas has established, combining finance, technology, legal, and operations expertise, could serve as a reference design for states navigating the same transition.
The broader significance lies in normalization. When a state government issues a formal RFP for bitcoin custody, appoints an advisory board, and sets a migration timeline from an ETF to held assets, it normalizes a process that two years ago would have been considered fringe. That normalization generates demand for custody providers, creates regulatory precedent, and pushes other state treasurers to evaluate their own positions.
The reserve is designed to grow beyond its current $10 million. Vecchiarelli's presence from CleanSpark suggests Texas is thinking seriously about where future bitcoin will come from, whether through open market purchases or arrangements that keep mining revenue within state borders. The next milestone is June 15, when custody vendor proposals are due. What Hancock's office selects will define how Texas holds bitcoin for years to come.
Also read: Standard Chartered Sees Ethereum Price at 40,000 Despite ETH Slump • The SEC is turning tokenized equities into a real Ethereum market. • Why New Blockchains Are Beating Bitcoin and Ethereum at Their Own Game
