BlackRock and Delaware Life Integrate Bitcoin in Fixed Index Annuities

BlackRock and Delaware Life Introduce Bitcoin to Annuities

Delaware Life Insurance Company, a leader in annuity-based retirement solutions, has teamed up with BlackRock to incorporate Bitcoin into its fixed index annuities using the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index. This collaboration marks a significant innovation in the retirement-planning sector.

Understanding Fixed Index Annuities

A fixed index annuity is a financial product offered by insurance companies that links growth potential to a market index while safeguarding the principal. Interest is credited based on index performance, with gains subject to caps or participation rates. These annuities grow tax-deferred and can convert into a guaranteed income stream during retirement.

Partnership Details

Through this partnership, Delaware Life has integrated the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index into three products: Momentum Growth, Momentum Growth Plus, and DualTrack Income. Colin Lake, President & CEO of Delaware Life Marketing, expressed pride in being the first to offer cryptocurrency exposure via a fixed index annuity, highlighting the company's commitment to evolving retirement solutions.

BlackRock's Innovative Benchmark

BlackRock's benchmark combines U.S. stocks and Bitcoin into a single index, utilizing dynamic cash allocations to maintain a 12% volatility target. Bitcoin exposure is facilitated through BlackRock's iShares Bitcoin Trust (IBIT), the largest Bitcoin ETF by assets and liquidity. According to Robert Mitchnick, BlackRock's Global Head of Digital Assets, this launch addresses growing demand for Bitcoin exposure and allows for diversified annuity strategies while ensuring principal protection.