Delaware Life Launches Bitcoin-Linked Annuity Using BlackRock’s IBIT

Published: 2026-01-20 17:16:06 |

Delaware Life Insurance Company has introduced a fixed indexed annuity that provides indirect exposure to Bitcoin by linking returns to BlackRock’s spot Bitcoin ETF, iShares Bitcoin Trust (IBIT). Announced in early 2025 and confirmed by Bloomberg ETF analyst Eric Balchunas, the product blends principal protection typical of fixed indexed annuities with upside tied to Bitcoin’s price movements via IBIT shares—avoiding direct custody or private-key management. The move follows the SEC’s January 2024 approval of spot Bitcoin ETFs and represents one of the first major insurance products to embed a spot BTC ETF. Key considerations for buyers include potential participation rates or caps on indexed gains, combined fees (insurance charges plus the ETF expense ratio), regulatory review by state insurance commissioners, and the long-term nature of annuities. The partnership with BlackRock adds institutional credibility and could pressure other insurers to offer similar crypto-linked products, widening regulated pathways for retirement-focused crypto exposure. This product targets retirement investors seeking growth potential from digital assets within a principal-protected, tax-advantaged contract.

Bullish

This development is bullish for Bitcoin and crypto markets overall because it broadens regulated, institutional pathways for retail and retirement capital to access BTC exposure. Embedding BlackRock’s IBIT into an insurance product lowers technical and custody barriers, which can attract conservative investors and large pools of retirement assets over time. Similar past catalysts—such as the January 2024 approval of spot Bitcoin ETFs—drove inflows, improved market liquidity, and supported price discovery. In the short term, the announcement may spark modest increased demand for BTC/IBIT as advisors and insurers evaluate the product, with positive sentiment around institutional adoption. In the medium to long term, wider adoption of crypto-linked financial products by insurers could increase sustained capital flows into Bitcoin, reduce perceived investment friction, and enhance mainstream legitimacy. Offsetting risks include fee drag, participation-rate limits that curb upside, and regulatory or consumer-protection pushback; these factors may temper but not negate the positive adoption trend.