BlackRock partners with Delaware Life to bring Bitcoin into fixed index annuities
Delaware Life Insurance Company, which provides annuity-based retirement solutions through a nationwide network of financial advisors, is partnering with BlackRock to bring Bitcoin into its fixed indexed annuities via the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index.
A fixed indexed annuity is a contract with an insurance company designed to offer growth potential tied to a market index while protecting the principal from losses.
The annuity credits interest based on the performance of a specific index, with gains limited by caps or participation rates. The account grows tax-deferred, and many FIAs allow the accumulated balance to be converted into a guaranteed income stream during retirement.
Under the partnership, Delaware Life has added the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index to three of its products, including Momentum Growth, Momentum Growth Plus, and DualTrack Income.
“We’re proud to partner with BlackRock as the first insurance carrier to offer cryptocurrency exposure through a fixed index annuity,” said Colin Lake, President & CEO of Delaware Life Marketing. “As the retirement-planning landscape evolves, we’re continuously and thoughtfully innovating to meet the needs of financial professionals and their clients.”
BlackRock’s benchmark blends US stocks and Bitcoin exposure into a single benchmark, using dynamic cash allocations to maintain a 12% volatility target. Bitcoin exposure is delivered through BlackRock’s iShares Bitcoin Trust (IBIT), the largest Bitcoin ETF by assets under management and liquidity.
According to Robert Mitchnick, BlackRock’s Global Head of Digital Assets, the launch responds to growing demand for IBIT and enables insurance clients to integrate Bitcoin exposure into a diversified annuity strategy.
The index is designed to offer measured participation in digital assets while preserving the principal protection annuities provide, he stated.
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