Delaware Life Insurance Company announced the integration of the “BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index” into its fixed index annuity (FIA) portfolio today. This marks the first time U.S. retirees can access Bitcoin exposure within a principal-protected insurance product, effectively bridging the gap between digital assets and conservative retirement planning.
The Mechanics: Capping Volatility, Not Upside
The new index does not offer raw Bitcoin exposure. Instead, it employs a volatility control mechanism designed to dampen the asset class’s notorious swings. The portfolio construction targets a specific risk profile:
- 74% iShares Core S&P 500 ETF (IVV)
- 25% iShares Bitcoin Trust (IBIT)
- 1% Cash
The index creates a dynamic allocation strategy targeting 12% annualized volatility. If realized volatility spikes, common for Bitcoin, which currently trades near $90,000, the index automatically shifts into cash to preserve stability. This structure allows Delaware Life to offer principal protection (flooring losses at 0%) while providing upside participation in Bitcoin’s price action.
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. Robert Mitchnick, BlackRock Global Head of Digital Assets
Institutional Context
Fixed Index Annuities (FIAs) represent a massive, conservative capital pool previously untouched by crypto. By wrapping IBIT (trading at ~$51.50) into an insurance wrapper, BlackRock has unlocked distribution to risk-averse demographics who cannot tolerate direct drawdown risk.
The product is available immediately across three Delaware Life offerings: Momentum Growth, Momentum Growth Plus, and DualTrack Income.
