Delaware Life Partners with BlackRock to Introduce Bitcoin Exposure in Annuities

Delaware Life is making strides to integrate Bitcoin exposure into retirement products by introducing a BlackRock-designed index that combines U.S. stocks and Bitcoin within its fixed indexed annuities (FIAs).

Key Takeaways

Delaware Life is introducing Bitcoin exposure in its fixed indexed annuities by partnering with BlackRock.
The BlackRock US Equity Bitcoin Balanced Risk 12% Index combines U.S. stocks and Bitcoin.
This innovation allows investors to gain Bitcoin exposure while maintaining principal protection inherent in FIAs.
The index will be available in three Delaware Life products, responding to increased demand for cryptocurrency in retirement planning.
The initiative aligns with broader trends in traditional finance that seek to integrate crypto within regulated financial products.

BlackRock

The insurance company, part of Group 1001, announced on Tuesday that it has incorporated the BlackRock US Equity Bitcoin Balanced Risk 12% Index into its annuity portfolio. This marks the first occasion that an insurance provider has included an index featuring cryptocurrency.

FIAs generally safeguard the policyholder's principal while earning interest that correlates with a market index, typically subject to certain caps or limits on potential gains.

The new index aims to deliver exposure to the iShares Core S&P 500 ETF in conjunction with the iShares Bitcoin Trust ETF and is designed to maintain 12% volatility by adding a cash component that can adjust risk levels.

Blending Cryptocurrency Access with Capital Security

Delaware Life highlighted this initiative as a means to provide investors with Bitcoin exposure without the need to manage the cryptocurrency directly, while preserving the principal protection characteristic of FIAs.

“We’re proud to partner with BlackRock as the first insurance carrier to offer cryptocurrency exposure through a fixed index annuity,” stated Colin Lake, president & CEO of Delaware Life Marketing.

“As the landscape for retirement planning evolves, we continuously and thoughtfully innovate to cater to the needs of financial professionals and their clients. Our fixed index annuities provide what today’s investors seek: growth opportunities with protection.”

Rising Demand for Bitcoin Exposure in Retirement Products

In the meantime, BlackRock’s Robert Mitchnick linked the index’s launch to the increasing demand for Bitcoin exposure through well-known financial structures, emphasizing that the aim is to offer a balanced approach that ensures the downside protection expected by annuity purchasers.

Furthermore, this index option will be available with three of Delaware Life's products: Momentum Growth, Momentum Growth Plus, and DualTrack Income, as traditional finance continues to explore ways to incorporate cryptocurrency exposure into regulated offerings.

The launch also capitalizes on the momentum surrounding BlackRock’s spot Bitcoin ETF, with iShares’ site showing net assets reaching tens of billions of dollars for IBIT.