Delaware Life Embeds Bitcoin in Annuities via BlackRock Index; BTC Holds $87K

Delaware Life Insurance became the first U.S. carrier to integrate Bitcoin into fixed indexed annuities (FIAs) Tuesday, launching a product linked to BlackRock’s volatility-controlled crypto index. The move grants retirees exposure to digital assets while protecting principal, a structure previously absent from the insurance sector.

The insurer added the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index (Ticker: BUEBTC12) to its Momentum Growth and DualTrack Income product lines. This index does not hold spot Bitcoin directly. Instead, it allocates approximately 25% to the iShares Bitcoin Trust (IBIT), 74% to the iShares Core S&P 500 ETF, and 1% to cash.

Engineered Volatility

Insurance carriers have historically shunned crypto due to capital requirement constraints and risk modeling. Delaware Life bypassed these hurdles by utilizing BlackRock’s target volatility mechanism. The index dynamically adjusts cash positions to cap annualized volatility at 12%, smoothing the asset class’s notorious drawdowns.

“The BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index offers a measured approach, allowing policyholders to participate in digital assets while maintaining the downside protection they expect from annuity products.” Robert Mitchnick, Global Head of Digital Assets at BlackRock

The launch follows President Trump’s August 2025 executive order, which explicitly permitted the inclusion of digital assets in alternative investment buckets for retirement plans. That regulatory green light likely accelerated the risk committee approvals at Group 1001, Delaware Life’s parent company.

Market Response

Bitcoin (BTC) traded at $87,774 (-2%) following the announcement, consolidating after a 3% weekly slide. While immediate price action was muted, the structural impact is long-term: insurance float is sticky. Annuity contracts typically lock capital for 5–10 years, creating a predictable, passive bid for IBIT shares independent of retail sentiment.

Colin Lake, CEO of Delaware Life Marketing, framed the product as a direct response to advisor demand for “growth with protection” rather than a speculative play. The annuity guarantees the principal, meaning policyholders cannot lose their initial premium even if Bitcoin or the S&P 500 collapses.