Delaware Life Insurance Company has become the first U.S. insurance carrier to offer a fixed index annuity (FIA) linked to a cryptocurrency-focused index, the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index.
Retirement investors can now gain an indirect exposure Bitcoin without sacrificing the protection of their principal, which is one hallmark of traditional products.
The newly launched index blends 74% exposure to the iShares Core S&P 500 ETF with 25% exposure to the iShares Bitcoin Trust ETF (IBIT( ) with a cash allocation of 1%. This strategy is designed to target a volatility of 12 percent, and it uses cash dynamic adjustments to reduce BTC’s price swings.
“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,” said Robert Mitchnick is the Global Head of Digital Assets for BlackRock.
“The BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index offers a measured approach, allowing policyholders to participate in digital assets while maintaining the downside protection they expect from annuity products.”
Colin Lake, Delaware Life’s Vice President of Marketing and Innovation, spoke about the focus that Delaware Life places on innovation.
“We’re proud to partner with BlackRock as the first insurance carrier to offer cryptocurrency exposure through a fixed index annuity,” Lake Said “As the retirement-planning landscape evolves, we’re continuously and thoughtfully innovating to meet the needs of financial professionals and their clients. Our fixed index annuities deliver what today’s investors want and need: opportunity for growth with protection.”
Bitcoin returns high with growth in equity
This index is designed to manage volatility while balancing traditional equity growth and BTC’s potential high returns.
BTC’s three-month performance is not comparable to the six-month returns of the BTC index as of December 31st, 2024. decline Contributed to a 3.16 % drop during that time period.
The BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index is available on three Delaware Life FIA products: Momentum Growth™, Momentum Growth Plus™, and DualTrack Income™, giving clients multiple avenues to integrate BTC exposure into retirement portfolios.
IBIT, which is the largest, most liquid Bitcoin Exchange-Traded Product, allows for professional management of the cryptocurrency without having to own it directly.
The first ever life insurance policy allows customers to choose a Bitcoin product.
BTC is currently trading at $87,774, a 2% drop in 24 hours. The 24-hour volume for BTC was $64 billion.
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Source: bitcoinmagazine.com
