Delaware Life Insurance Company has become the first U.S. insurance carrier to offer a fixed index annuity (FIA) linked to a cryptocurrency-focused index, the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index.
The move allows retirement investors to gain indirect exposure to Bitcoin while retaining principal protection, a hallmark of traditional annuity products.
The newly launched index blends 74% exposure to the iShares Core S&P 500 ETF with 25% exposure to the iShares Bitcoin Trust ETF (IBIT) and a 1% cash allocation. It is designed with a 12% target volatility, using dynamic cash adjustments to moderate BTC’s price swings.
“This launch builds around the tremendous success and client demand we have seen for IBIT, enabling insurance clients to now add Bitcoin exposure as part of a broader indexed annuity strategy,” said Robert Mitchnick, Global Head of Digital Assets at BlackRock.
“The BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index offers a measured approach, allowing policyholders to participate in digital assets while maintaining the downside protection they expect from annuity products.”
Delaware Life’s CEO of Marketing, Colin Lake, touched on the company’s focus on innovation.
“We’re proud to partner with BlackRock as the first insurance carrier to offer cryptocurrency exposure through a fixed index annuity,” Lake said. “As the retirement-planning landscape evolves, we’re continuously and thoughtfully innovating to meet the needs of financial professionals and their clients. Our fixed index annuities deliver what today’s investors want and need: opportunity for growth with protection.”
Bitcoin’s high returns balanced with equity growth
The index’s mixed allocation is designed to balance traditional equity growth with BTC’s high return potential, all while managing volatility.
As of December 31, 2024, the index delivered a six-month return of 1.88%, though BTC’s recent three-month decline contributed to a 3.16% drop over that period.
The BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index is available on three Delaware Life FIA products: Momentum Growth™, Momentum Growth Plus™, and DualTrack Income™, giving clients multiple avenues to integrate BTC exposure into retirement portfolios.
The inclusion of IBIT, the largest and most liquid Bitcoin exchange-traded product, provides professional management without requiring direct cryptocurrency ownership.
This is the first time a life insurance company has allowed policy holders to select a product which includes Bitcoin.
The price of BTC today is $87,774, down 2% in the last 24 hours, with a 24-hour trading volume of $64 billion.