Delaware Life Insurance Company has made a significant leap in the retirement planning landscape by becoming the first U.S. insurance carrier to introduce a fixed index annuity (FIA) that incorporates exposure to a cryptocurrency-focused index. This innovative product is linked to the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index, marking a pivotal moment for retirement investors seeking a measured approach to digital assets.

This pioneering offering enables policyholders to gain indirect exposure to Bitcoin, a leading cryptocurrency, while simultaneously benefiting from the principal protection inherent in traditional annuity products.

The BlackRock index is strategically designed to balance growth and risk, allocating 74% of its exposure to the iShares Core S&P 500 ETF, 25% to the iShares Bitcoin Trust ETF (IBIT), and maintaining a 1% cash allocation. Its architecture includes a 12% target volatility and utilizes dynamic cash adjustments to effectively moderate the inherent price swings of Bitcoin.

Robert Mitchnick, Global Head of Digital Assets at BlackRock, underscored the rationale behind this development, stating, "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."

He further emphasized the balanced nature of the index, allowing policyholders to engage with digital assets while retaining the expected downside protection of annuity products. Colin Lake, CEO of Marketing at Delaware Life, echoed this sentiment, highlighting the company's commitment to innovation and meeting the evolving needs of financial professionals and their clients. Lake affirmed, "Our fixed index annuities deliver what today’s investors want and need: opportunity for growth with protection."

The index’s mixed allocation strategy is specifically crafted to harmonize the growth potential of traditional equities with Bitcoin's typically high returns, all while actively managing overall volatility. As of December 31, 2024, the index had delivered a six-month return of 1.88%. However, it also experienced a 3.16% drop over the three-month period ending on the same date, primarily influenced by Bitcoin’s recent decline.

This innovative BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index is currently available across three of Delaware Life’s prominent FIA products: Momentum Growth™, Momentum Growth Plus™, and DualTrack Income™. This provides clients with diverse avenues to integrate Bitcoin exposure into their broader retirement portfolios.

The inclusion of IBIT, recognized as the largest and most liquid Bitcoin exchange-traded product, ensures professional management of the underlying asset without necessitating direct cryptocurrency ownership by the policyholder. This marks the first instance where a life insurance company has enabled policyholders to select a product that incorporates Bitcoin exposure.

In related market context, the price of BTC today stands at $87,774, reflecting a 2% decrease over the last 24 hours, with a reported 24-hour trading volume of $64 billion.