Delaware Life Adds Bitcoin Exposure to Fixed Annuity via BlackRock

TLDR

• Delaware Life Insurance Company has partnered with BlackRock to offer Bitcoin exposure through its fixed index annuity products.
• The new offering includes the BlackRock U.S. Equity Balanced Risk 12% Index, blending traditional equities with Bitcoin exposure.
• BlackRock’s iShares Core S&P 500 ETF and iShares Bitcoin Trust ETF are key investments in the new index.
• The fixed annuity product ensures principal protection while providing potential for growth through Bitcoin exposure.
• BlackRock’s IBIT Bitcoin ETF has attracted nearly $76 billion in assets under management since its launch in January 2024.

Delaware Life Insurance Company has partnered with BlackRock to offer Bitcoin exposure through its fixed index annuity products. The new offering adds the BlackRock U.S. Equity Balanced Risk 12% Index to Delaware Life’s portfolio. This index combines traditional U.S. equities with Bitcoin, providing investors with exposure to digital assets while retaining the safety of fixed annuities.

A New Approach to Retirement Planning

Delaware Life is the first insurance carrier to integrate cryptocurrency exposure into its fixed index annuities. The company’s move responds to growing interest from investors seeking to add digital assets to their retirement strategies. This product targets both growth opportunities and downside protection, two critical factors for investors focused on long-term financial security.

The new index includes investments in BlackRock’s iShares Core S&P 500 ETF and the iShares Bitcoin Trust ETF. This combination enables policyholders to benefit from Bitcoin’s potential for high returns while maintaining the security of an annuity. As a fixed annuity, the product guarantees that the investor’s principal remains safe from market losses, offering a stable option in an otherwise volatile market.

Delaware Life Leverages BlackRock’s Bitcoin Expertise

BlackRock, the issuer of the world’s largest spot Bitcoin ETF (IBIT), played a key role in developing the new product. Robert Mitchnick, BlackRock’s Global Head of Digital Assets, expressed confidence in the partnership, stating that it will meet the growing demand for digital asset exposure within the insurance sector. He emphasized that the collaboration allows policyholders to engage with Bitcoin without sacrificing the downside protection that annuities are known for.

The IBIT ETF, launched in January 2024, has already attracted nearly $76 billion in assets under management. This partnership underscores the rapid growth of Bitcoin-linked financial products and highlights the rising acceptance of cryptocurrencies in mainstream financial sectors. By incorporating Bitcoin into fixed index annuities, Delaware Life aims to offer a balanced solution for investors who want both growth and protection.

Innovation in the Insurance Industry

This new offering marks an important shift in the retirement planning landscape. It combines the traditional strengths of fixed annuities with the potential for high returns associated with Bitcoin. With Bitcoin positioned for another potential bull run, the product offers policyholders a way to benefit from the cryptocurrency’s future performance while ensuring downside protection.

Delaware Life’s CEO, Colin Lake, highlighted the importance of continuous innovation to meet the evolving needs of financial professionals and their clients. The company’s efforts reflect a broader trend in the financial sector where traditional investment vehicles are adapting to include new asset classes like Bitcoin.

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