Innovative Integration of Bitcoin in Fixed Indexed Annuities

Delaware Life Insurance Company has partnered with BlackRock to integrate Bitcoin exposure into its fixed indexed annuities via the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index. This strategic collaboration marks a significant shift in the retirement planning landscape, offering innovative avenues to merge traditional financial products with emerging digital assets.

Understanding Fixed Indexed Annuities

Fixed indexed annuities (FIAs) are specialized financial instruments that tie interest rates to a market index, facilitating potential growth while safeguarding the principal against market volatility. These annuities, designed under stringent regulatory compliance requirements, enable tax-deferred growth and often transition into guaranteed income streams for retirees, supporting long-term financial planning.

BlackRock Integration and Strategic Diversification

Delaware Life has embedded the BlackRock index into several products, including Momentum Growth and DualTrack Income. Colin Lake, President and CEO of Delaware Life Marketing, describes this initiative as pioneering in providing cryptocurrency exposure within fixed index annuities. This collaboration underscores Delaware Life’s commitment to innovation, addressing the evolving needs of financial professionals, and enhancing client asset management strategies.

BlackRock's index artfully combines exposure to U.S. equities and Bitcoin, maintaining a 12% volatility target through dynamic cash allocations. The Bitcoin component operates under BlackRock’s iShares Bitcoin Trust (IBIT), renowned for its substantial assets under management and robust liquidity. Robert Mitchnick, Global Head of Digital Assets at BlackRock, notes the initiative meets increasing client demand for strategic risk management and diversification within annuity holdings.

This integration seeks to skillfully merge digital and traditional finance, ensuring principal protection. As the insurance industry adapts to embrace digital asset participation, this collaboration is poised to stimulate enhanced market interest and foster diversified retirement planning solutions.