In what it deems a first for an insurer, Delaware Life Insurance Company, a Group 1001 company, added BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index to its fixed index annuity (FIA) portfolio.
The new offering will enable investors to gain exposure to bitcoin while keeping the protection of their principal.
The timing coincides with bitcoin’s 17th birthday and the second anniversary of BlackRock iShares Bitcoin Trust ETF.
Daniel Getler, vice president, Index and Fund Solutions, Group 1001, told Annuity.org that industry dynamics suggest that similar products are likely to emerge.
“The annuity market has a history of adopting new index concepts and asset exposures once they are proven feasible and commercially viable,” Getler said. “Volatility-controlled indices, factor-based equity indices, and multi-asset proprietary benchmarks all followed a similar trajectory from innovation to broader adoption.”
Why Delaware Life Is Introducing a Bitcoin-Linked FIA Now
Getler said that the timing of Delaware Life Insurance Company’s addition of the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index to its FIA portfolio reflects the maturation of bitcoin’s institutional ecosystem and “our willingness and ability to support innovative index designs.”
The Securities and Exchange Commission (SEC) approved bitcoin ETFs in January 2024. These have recorded massive inflows and have $113.54 billion in total assets (as of January 27).
BlackRock’s iShares Bitcoin Trust takes the lion’s share, with $63 billion in assets.
Another factor in the institutionalization of bitcoin is that in May, the Department of Labor rescinded a Biden-era guidance, which “discouraged fiduciaries from including cryptocurrency options in 401(k) retirement plans.”
And in August, President Donald Trump signed an executive order, allowing retirement plans to include alternative investments, such as digital assets.
Getler said that historically, bitcoin exposure was primarily achieved through direct ownership on specialized platforms, raising concerns about custody, security, and regulatory oversight.
Several key developments, however, have reshaped this landscape, including the growth of listed bitcoin futures, including more efficient margin structures, the rapid adoption of spot bitcoin ETFs, and the emergence of listed options on some funds, such as BlackRock’s iShares Bitcoin Trust, he noted.
“These advancements have enabled the construction of rules-based, risk-managed indices that can incorporate bitcoin exposure in a manner more compatible with insurance products. What was once a niche, retail-driven asset class now has the liquidity, transparency, and infrastructure required for integration into a principal-protected product,” Getler said.
Who Is This Bitcoin-Linked Annuity Designed For?
Daniel Peterson, president and managing partner at independent insurance brokerage E4 Insurance Services, said that successful innovation in the space is never about chasing the shiny new object; it is about using new tools to solve old, persistent client problems: protecting principal, managing volatility, and creating a disciplined path to long-term growth.
Peterson added that over the past few years, digital assets have moved from fringe speculation to mainstream conversation, and many clients, including pre-retirees and retirees, are asking their advisors whether they should have any exposure to bitcoin at all.
“They are reading headlines, seeing the growth of spot bitcoin ETFs, and wondering if they are missing out—yet they are understandably uncomfortable with the idea of opening a crypto exchange account, managing keys, or tolerating the full brunt of bitcoin’s volatility in their retirement nest egg,” he said. “A fixed indexed annuity that links to a professionally engineered index—including a measured allocation to a bitcoin ETF—arrives precisely at this moment of curiosity plus caution.”
According to him, this new product may be appropriate for investors who are intrigued by bitcoin’s potential but whose primary goals are still retirement income security, principal protection, and tax-deferred growth.
“Think of the client who has built a solid base of guaranteed income and traditional fixed or fixed index annuities, but is worried about inflation, disruption, and the possibility that ‘what got us here’ may not be enough for the next 20–30 years,” he said.
This design allows them to allocate a modest portion of their annuity strategy to a growth-oriented index that includes a bitcoin sleeve, while keeping their annuity principal protected from market losses.
“It is not for someone looking to ‘day trade crypto’ or make an all-or-nothing bet; it is for the client who wants a disciplined, rules-based, institutionally managed path to participate in,” he added.
In addition, Getler said that compared with holding a bitcoin ETF or direct bitcoin in a brokerage or cryptocurrency account, the FIA structure gives the customer the benefit of using an outside market index as a benchmark for determining indexed account earnings while providing protection and risk moderation over pure return maximization.
“It may therefore appeal less to aggressive, return-seeking investors and more to those who view bitcoin as a potential diversifier within a broader, conservative retirement strategy,” he added.
How the Bitcoin Balanced Risk Index Works Inside an FIA
The index delivers institutional-grade bitcoin exposure through a familiar ETF structure, eliminating the complexity of direct cryptocurrency ownership. Its design blends U.S. equities with bitcoin, targeting 12% volatility through dynamic cash adjustments, and offers diversified cryptocurrency upside without the extreme swings associated with direct bitcoin ownership.
Getler explained that, compared with direct bitcoin ownership, where volatility can be extreme and unmitigated, this index aims to smooth the return profile.
In turn, he said that when volatility rises, the index can shift more heavily into cash, reducing exposure to risk assets.
“Importantly, because equities and bitcoin do not necessarily experience high volatility at the same time, when exposure in one is reduced in response to elevated volatility, exposure in the other can fill some of the gap, requiring less exposure to cash to achieve the smoothing effect,” he said.
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Will Other Insurers Follow Delaware Life’s Lead?
The appeal of integrating digital assets into retirement products rests on two forces: investor interest in bitcoin and other digital assets, and the ongoing drive among carriers and distributors to differentiate product offerings, according to Getler.
“That said, the pace and breadth of adoption will depend on each carrier’s risk appetite, infrastructure, regulatory interpretation, and comfort with digital assets. Not all providers will move at the same speed, and some may choose not to participate at all,” he said.
Peterson echoed the sentiment, saying that if advisors and clients embrace bitcoin-linked exposure inside a principal-protected annuity, you can count on other carriers exploring their own risk-managed digital-asset indices—perhaps with different blends, other cryptocurrencies, or alternative risk controls.
“The first mover takes the arrows, does the heavy lifting with regulators and distributors, and proves whether there is real, sustainable demand,” he said.
He also cautioned that the fact that we can now embed a bitcoin-linked index in a fixed indexed annuity does not mean it belongs in every client’s plan, and the questions advisors and insurance professionals should be asking are timeless.
“Does this product help this specific client better achieve their retirement income, legacy, or tax-efficiency goals?”
“Is the client financially and emotionally prepared for more volatile crediting in exchange for higher growth potential?”
“Can the advisor explain, in plain language, how the index works, what is guaranteed, and what is not?”
“When those answers are affirmative, this type of product can be a powerful addition to the toolbox—a way to give clients measured, institutionally managed exposure to an emerging asset class without abandoning the core promises of the annuity chassis,” Peterson added.
