Texas Bought the Dip, Did You?

TL;DR

• Texas used the dip to buy $5 million worth of Bitcoin.

• U.S. citizens may soon be able to pay their taxes in BTC. 

• Spot Bitcoin ETFs saw a record trading volume of $40 billion last week. 

Texas Becomes First State to Buy $5 Million of a Spot Bitcoin ETF for Its Treasury 🐂

We have already seen a handful of States pushing to use Bitcoin as a strategic reserve asset. New Hampshire and Arizona have enacted laws to use Bitcoin as a reserve asset and invest in it for each State's treasury. 

This week, we can add Texas to that list as well! 

Texas is already a Bitcoin hub, with many Bitcoin VCs and builders in Austin, and plenty of miners based in the Lone Star State. Moreover, earlier this year, Governor Abbott signed the Bitcoin treasury bill into law, paving the way for a strategic Bitcoin reserve. 

This week, the President of the Texas Blockchain Council, Lee Bratcher, announced that Texas has pulled the trigger and bought $5 million worth of BlackRock’s iShares Bitcoin Trust (IBIT), giving the state direct exposure to Bitcoin via a spot ETF. 

According to Bratcher, the Comptroller of Texas, Kelly Hancock, bought shares in the Bitcoin ETF on 20 November with a cost basis of approximately $87,000. 

U.S. Citizens Might Soon Be Able to Pay Taxes in Bitcoin 🇺🇸

Speaking of the strategic national Bitcoin reserve, we also have some exciting news this week. 

Rep. Warren Davidson (R-OH) recently made headlines by introducing legislation to enable Bitcoin tax payments without incurring capital gains. 

He announced the legislation on his website and calls it the Bitcoin for America Act. With these payments, he also moves to use the proceeds for the strategic Bitcoin reserve. 

I quote from his press release: "The Bitcoin for America Act marks an important step toward modernizing our financial systems and embracing the innovation that millions of Americans already use every day…By allowing taxpayers to pay federal taxes in Bitcoin and having the proceeds placed into the Strategic Bitcoin Reserve, the nation will benefit by having a tangible asset that appreciates in value over time - unlike the U.S. dollar, which has steadily lost value under inflationary pressures."

Since March of this year, when President Trump signed the executive order establishing a “taxpayer-neutral” Strategic Bitcoin Reserve, markets have been waiting to see what those accumulation mechanisms actually look like.

This legislation by Representative Davidson is the first of its kind that indicates a possible accumulation model. 

Spot Bitcoin ETFs Saw Record Trading Volume 👀

Lastly, I want to mention yet another record set by the spot Bitcoin ETFs. 

According to CoinDesk, all 11 funds saw cumulative trading volume of $40.32 billion last week. 

The largest ETF was IBIT with $27.79 billion in trading volume, accounting for nearly 70% of the total volume. 

BlackRock's fund also recorded the largest volume on Friday, 21 November, with $8 billion of the total $11.01 billion in trading volume on a single day alone! 

Elsewhere in Bitcoin 📖

A quick look at what else has been happening in Bitcoin: 

• VanEck CEO is worried about Bitcoin's encryption and privacy 

• Crypto-friendly Trump adviser is the top pick for Fed Chair

• Will New York soon have a crypto and Bitcoin-friendly Attorney General?

Lastly, I want to wish everyone a Happy Thanksgiving! 🦃

Your fellow stacker in sats, 

Patrick Lowry

Disclaimer: The opinions expressed in this newsletter are solely those of the author and do not necessarily represent the views of any associated company. This newsletter is for educational and informational purposes only and should not be construed as investment, financial, or any other professional advice. Investing in cryptocurrencies is highly speculative and carries a significant risk of substantial financial loss, so you must conduct your own thorough research and consult with independent professional advisors before making any decisions.