- Delaware Life becomes the first U.S. insurer to add indirect Bitcoin exposure to fixed indexed annuities.
- Bitcoin exposure is indirect, delivered via BlackRock’s index using the IBIT ETF, not direct ownership.
- The index targets 12% volatility and preserves principal protection across selected annuity products.
Delaware Life Insurance Company has introduced a new fixed-indexed annuity (FIA) option that provides indirect exposure to Bitcoin, marking a first for the U.S. insurance sector in this product category. The insurer said the new option expands the range of index strategies available to annuity policyholders while maintaining principal protection features typical of fixed indexed annuities.
The addition centers on the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index, which will be available across selected Delaware Life annuity products. According to the company, the move signals growing interest in digital asset-linked strategies being integrated into traditional financial structures.
Structure of the New Index Offering
The index combines exposure to U.S. equities with Bitcoin through a single, rules-based framework. Rather than holding Bitcoin directly, the digital asset is accessed through the iShares Bitcoin Trust ETF (IBIT), which serves as the Bitcoin proxy in the index. This structure means policyholders do not own Bitcoin or a Bitcoin ETF outright, but instead gain indirect exposure through the index linked to their annuity contract.
The index is intended to target a volatility level of 12%. To achieve this, it employs dynamic cash allocations that adjust exposure between equities, Bitcoin, and cash depending on market conditions. These adjustments are intended to moderate fluctuations associated with Bitcoin’s price movements while keeping the index’s overall risk parameters.
Delaware Life said the index option will be offered on three of its fixed indexed annuity products: Momentum Growth, Momentum Growth Plus, and DualTrack Income. As with other fixed indexed annuities, policyholders’ principal contributions remain protected from market losses, while credited interest depends on the performance of the selected index, subject to contract terms.
The insurer operates as a subsidiary of Group 1001 and confirmed that this is the first instance of a U.S. insurance carrier offering a fixed indexed annuity tied to an index containing cryptocurrency exposure.
Role of BlackRock and IBIT
BlackRock developed the index and provides the Bitcoin exposure through IBIT, its spot Bitcoin exchange-traded product. As of the end of last week, IBIT held over $70 billion in assets under management, making it the largest and most liquid bitcoin exchange-traded product currently available.
BlackRock representatives said the index was structured to align with the risk and design constraints typical of insurance-linked products, combining traditional equity exposure with a capped, managed allocation to Bitcoin.
Related: BlackRock Names Bitcoin ETF a Top Investment Theme for 2025
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Source: https://coinedition.com/delaware-life-adds-bitcoin-linked-index-to-fixed-indexed-annuities/
