Bitcoin Breaks Into U.S. Insurance Market With Historic Annuity Launch

Delaware Life Insurance Company has announced this week that it has added a BlackRock index that has Bitcoin exposure to its fixed index annuity offerings. 

The company has officially become the first U.S. insurance carrier to offer a fixed index annuity (FIA) linked to an index that includes cryptocurrency. The new option is also the BlackRock U.S. Equity Bitcoin that has a 12% Balanced Risk Index, and is developed by BlackRock.

How Delaware Insurance Plans to Expose Clients to Bitcoin

The new index would try to blend with the already existing U.S. stock market exposure to BTC; with this, they would be able to deliver diversified growth rather than just pure crypto performance.

Typically, the way many big investors and institutions access BTC is through the iShares Bitcoin Trust ETF (IBIT), that is, BlackRock’s spot Bitcoin ETF is also the largest BTC exchange-traded product by assets.

To help reduce sharp swings that are typically associated with BTC, the index targets a 12% volatility level. This is achieved through dynamic allocations between the equities, Bitcoin, and cash, helping deliver smooth returns over time.

Also Read: Bitcoin Milestone: Strategy Tops 700,000 BTC After $2.1 Billion Accumulation

According to BlackRock, this structure is put in place to allow investors to participate in digital assets without needing to directly buy, store, or manage the token themselves. Robert Mitchnick, BlackRock’s Global Head of Digital Assets, said the index was designed to balance innovation with the downside of protection annuity many investors expect.

This move shows the growth and acceptance of BTC and also the rising demand for crypto-linked products that still offer capital protection. For annuity investors, it provides a way to gain limited BTC exposure while keeping principal protection intact.

For Delaware Life, the addition aligns with its broader goal of expanding its investment options for financial advisors and clients, particularly as the interest in alternative assets continues to grow.

Also Read: Vietnam’s Crypto Licensing Begins Jan 20: What Investors Should Know