Delaware Life Launches First Bitcoin-Linked Fixed Annuity

• Delaware Life introduces Bitcoin-linked index in FIA lineup with full principal protection.
• BlackRock manages 12% volatility index blending Bitcoin and U.S. equities for safety.
• Product avoids direct crypto custody, letting investors gain exposure through annuities.

Delaware Life Insurance Company on Tuesday added Bitcoin exposure to its fixed indexed annuity lineup in the United States. The Group 1001 insurer introduced a BlackRock-built index inside its FIA portfolio. The move offers Bitcoin-linked returns, keeping full principal protection, using a risk-managed structure instead of direct ownership.

BlackRock Index Brings Crypto Into Annuity Structure

The insurer added the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index to its FIA portfolio, according to the company. Delaware Life said it became the first insurance carrier to offer an index containing cryptocurrency. The index blends U.S. equities and Bitcoin within a single framework.

The structure combines exposure to U.S. stocks with Bitcoin through regulated exchange-traded products. Specifically, the index references the iShares Core S&P 500 ETF and the iShares Bitcoin Trust ETF. BlackRock manages the index design and allocation process.

To control risk, the index targets 12% volatility. It dynamically shifts allocations and adds cash when market swings increase. However, the design avoids leverage and direct crypto custody.

Bitcoin exposure comes through the iShares Bitcoin Trust ETF, known as IBIT. BlackRock lists IBIT as the largest and most liquid Bitcoin ETP. This setup removes the need for policyholders to handle wallets or private keys.

Delaware Life said the index launch aligns with Bitcoin’s 17th anniversary. It also coincides with the second anniversary of IBIT. According to the companies, these milestones influenced the timing of the rollout.

Why Fixed Indexed Annuities Can Support Bitcoin Exposure

Fixed indexed annuities typically protect principal while linking credited interest to a market index. However, they usually rely on equity or bond benchmarks. Delaware Life expanded that framework by integrating Bitcoin exposure inside the index.

The FIA wrapper keeps downside protection intact. Policyholders do not experience direct market losses beyond credited interest limits. Notably, the insurer, not the investor, absorbs currency and index risks.

The product removes operational barriers tied to crypto investing. Investors avoid custody arrangements, security management, and transaction complexity. As a result, participation occurs through a familiar insurance contract.

Delaware Life said the index option will appear on three products. These include Momentum Growth, Momentum Growth Plus, and DualTrack Income. Each product maintains standard FIA features alongside the new index option.

Colin Lake, President and CEO of Delaware Life Marketing, confirmed the partnership with BlackRock. He said the company added crypto exposure through a fixed indexed annuity structure. He also emphasized growth opportunity combined with protection.

Meanwhile, BlackRock described the index as measured and risk-aware. Robert Mitchnick, Global Head of Digital Assets at BlackRock, referenced demand for Bitcoin exposure through traditional products. He said the index maintains downside protection expected by annuity buyers.

Related: IBIT Shorts Drop as Institutions Reset Bitcoin ETF Positions

Risk Controls Influence the Index Design

Bitcoin volatility remains central to product design. Unchecked exposure could conflict with insurance risk standards. Therefore, the index relies on volatility targeting and allocation discipline. The 12% volatility target limits exposure during turbulent periods. 

When volatility rises, the index increases cash allocation. However, it raises exposure when conditions stabilize. This structure separates the product from direct crypto investing. Investors do not face timing decisions driven by headlines. Instead, the index follows predefined adjustment rules.

Delaware Life applies additional FIA safeguards beyond the index. Caps and crediting methods limit upside and protect principal. However, these mechanisms remain standard across fixed indexed annuities.

The insurer said the move reflects growing client demand for diversified growth. However, the company framed the rollout within established regulatory standards. The index operates inside regulated annuity products.

The announcement adds crypto-linked exposure to retirement-oriented insurance products. According to Delaware Life, the structure preserves conservative foundations. At the same time, it introduces digital asset participation through controlled allocation.

The launch places Delaware Life within a small group testing crypto inside insurance frameworks. Other insurers continue to observe performance and uptake. Meanwhile, Delaware Life positioned the index as an additional option, not a replacement.

The product remains optional within the FIA lineup. Policyholders choose allocation based on suitability and risk tolerance. The company did not disclose sales targets or asset projections.

Meanwhile, Delaware Life introduced a Bitcoin-linked index within fixed indexed annuities on Tuesday. The structure combines BlackRock’s volatility-managed design with principal protection. The rollout connects Bitcoin exposure with regulated retirement products, using defined controls and established annuity mechanics.