Delaware Life Insurance Company has become the first U.S. insurance carrier to launch a fixed index annuity (FIA) linked to the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index, a cryptocurrency-focused benchmark. This innovative product allows retirement investors to gain indirect exposure to Bitcoin while preserving the principal protection characteristic of traditional annuity products. The move marks the first time a life insurance company has integrated crypto assets into a fixed index annuity offering.
The newly introduced index is constructed with a 74% allocation to the iShares Core S&P 500 ETF, a 25% allocation to the iShares Bitcoin Trust ETF (IBIT), and a 1% cash reserve. It is engineered with a target volatility of 12%, employing dynamic cash adjustments to temper Bitcoin's price swings. Robert Mitchnick, Global Head of Digital Assets at BlackRock, stated: "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. 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."
Colin Lake, CEO of Marketing at Delaware Life, emphasized the company's dedication to innovation: "We're proud to partner with BlackRock as the first insurance carrier to offer cryptocurrency exposure through a fixed index annuity. 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 Bitcoin's high return potential while managing volatility. As of December 31, 2024, the index delivered a six-month return of 1.88%, though Bitcoin's recent three-month decline contributed to a 3.16% drop over that period. The performance reflects the dual nature of the product: offering exposure to both a stable equity market and a volatile digital asset.
The BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index is available across three Delaware Life FIA products: Momentum Growth™, Momentum Growth Plus™, and DualTrack Income™. These provide clients with multiple avenues to integrate Bitcoin exposure into retirement portfolios. By utilizing IBIT, the largest and most liquid Bitcoin exchange-traded product, the index offers professional management without requiring direct cryptocurrency ownership. This marks the first time a life insurance company has allowed policyholders to select a product that includes Bitcoin exposure. As of the latest data, Bitcoin is trading at $87,774, down 2% in the past 24 hours, with a 24-hour trading volume of $64 billion. The launch underscores a growing trend of traditional financial institutions bridging the gap between conventional retirement products and digital assets.