Delaware Life Launches First Bitcoin-Linked Annuity

Delaware Life Insurance Company has made history by becoming the first U.S. insurer to offer a fixed index annuity (FIA) linked to a cryptocurrency-focused index. This groundbreaking move allows retirement investors to gain indirect exposure to Bitcoin while retaining the principal protection that is a hallmark of traditional annuity products.

The newly launched product tracks the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index, a sophisticated blend of traditional equity growth and digital asset potential. This development marks a significant evolution in the retirement-planning landscape, merging the stability of annuities with the growth opportunities of the digital asset class.

The index is strategically constructed to balance traditional market exposure with Bitcoin's high-return potential. It is composed of three core components, designed to manage volatility while participating in digital asset growth.

The allocation is as follows:

• 74% exposure to the iShares Core S&P 500 ETF
• 25% exposure to the iShares Bitcoin Trust ETF (IBIT)
• 1% cash allocation for liquidity and stability

A key feature of the index is its 12% target volatility. It uses dynamic cash adjustments to moderate the significant price swings often associated with Bitcoin. This measured approach allows policyholders to participate in digital assets while maintaining the downside protection they expect from annuity products.

The launch is the result of a strategic partnership between Delaware Life and BlackRock, leveraging the success of BlackRock's Bitcoin ETF.

“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.”

— Robert Mitchnick, Global Head of Digital Assets at BlackRock

From Delaware Life's perspective, the product represents a commitment to innovation in response to evolving client needs.

“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.”

— Colin Lake, CEO of Marketing at Delaware Life

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
• DualTrack Income

This gives 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 launch represents a historic first for the life insurance industry, allowing policyholders to select a product that includes Bitcoin exposure within a protected framework. It signals a growing acceptance of digital assets within mainstream financial products and offers a new tool for diversifying retirement portfolios.

As the market for digital assets continues to mature, products like this may pave the way for further innovation at the intersection of traditional insurance and cryptocurrency investment.