BlackRock Brings Bitcoin Exposure to US Fixed Index Annuities via Delaware Life
BlackRock has enabled bitcoin exposure within a US insurance product by adding a volatility-controlled index to Delaware Life’s fixed index annuity lineup. Delaware Life (a Group 1001 subsidiary) confirmed it adopted the BlackRock US Equity Balanced Risk 12% Index, which blends US equity exposure via the iShares Core S&P 500 ETF and bitcoin exposure via the iShares Bitcoin Trust ETF (IBIT). IBIT, BlackRock’s spot Bitcoin ETF launched in January 2024, holds roughly $76 billion AUM. The index targets 12% volatility and dynamically adjusts allocations to limit downside risk, fitting the principal-protected structure of fixed index annuities. The arrangement lets insurers and policyholders obtain bitcoin-linked returns without direct BTC ownership, aligning crypto exposure with insurer capital and regulatory constraints. For traders, the move signals broader institutional distribution channels for BTC into long-duration, retirement-oriented financial products, potentially increasing long-term demand while keeping exposure within conservative risk parameters.
Bullish
The integration of BlackRock’s IBIT into an insurance fixed index annuity is likely bullish for Bitcoin over the medium to long term. It creates a new, regulated channel for institutional and retail retirement capital to obtain BTC exposure without direct custody, expanding demand sources. The index’s 12% volatility target and dynamic allocation limit short-term shock transmission to insurance balance sheets, reducing systemic risk and easing regulatory/insurer adoption—factors that support gradual asset inflows. Historical parallels: approval and growth of US spot BTC ETFs in 2024 similarly increased institutional demand and supported price appreciation. Short-term impact may be muted or neutral because the product packages exposure with downside controls and is targeted at conservative, long-duration buyers (slow capital deployment). Over months to years, though, widespread adoption of similar insurance and retirement products can increase institutional demand elasticity, reduce perceived custody/counterparty frictions, and thus be structurally bullish for BTC.