Delaware Life Launches First Crypto-Linked Fixed Index Annuity in the U.S.

Delaware Life Insurance Company has become the first U.S. insurer to introduce a cryptocurrency-linked investment option within a fixed index annuity (FIA), marking a significant milestone in the integration of digital assets into traditional retirement products. The launch follows a strategic partnership with BlackRock and reflects growing institutional confidence in bitcoin-related investments.

The insurer announced that it will add the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index to its FIA product lineup. This new offering allows investors to gain indirect exposure to bitcoin returns while maintaining principal protection, a key feature of fixed index annuities. By combining downside protection with potential upside linked to crypto markets, the product aims to address long-standing concerns around volatility and risk.

The index blends U.S. equity exposure with bitcoin through BlackRock’s iShares Bitcoin Trust ETF (IBIT). It is designed to target a 12% volatility level using a dynamic allocation strategy that shifts into cash when market fluctuations increase. This structure helps moderate bitcoin’s price swings, making it more suitable for conservative investors, including those approaching or in retirement.

For many retirement-focused investors, direct participation in cryptocurrency markets has been limited by complexity, custody concerns, and high volatility. Delaware Life’s FIA solution offers a simplified alternative by embedding bitcoin exposure into a familiar insurance product, eliminating the need to directly buy, hold, or manage digital assets.

According to BlackRock, demand for IBIT has been strong since its launch in 2024, quickly making it the largest and most liquid spot bitcoin ETF in the market. The success of the ETF paved the way for its inclusion in insurance-based investment products designed for long-term financial planning.

This move by Delaware Life, a subsidiary of Group 1001, highlights a broader trend of legacy financial institutions embracing digital assets through regulated and risk-managed structures. As crypto-linked annuities and indexed products gain traction, the line between traditional finance and digital assets continues to narrow, opening new opportunities for investors seeking diversified, retirement-friendly exposure to bitcoin.