Delaware Life and BlackRock Launch the First Bitcoin Annuity Product, a New Move for Institutions Entering the Crypto Asset Space

American insurance giant Delaware Life Insurance Company has teamed up with asset management firm BlackRock to create a groundbreaking annuity product. This annuity is the first in the United States to incorporate Bitcoin into a Fixed Index Annuity (FIA) framework, marking a significant shift in traditional financial institutions’ attitudes toward digital assets.

The product is based on BlackRock’s carefully designed index—the US Stock and Bitcoin Balanced Risk 12% Index—and uses BlackRock’s Bitcoin ETF product IBIT as a management tool for crypto exposure. This design cleverly combines stock investments with Bitcoin exposure, while employing a dynamic cash allocation mechanism to keep volatility at the 12% target level, providing risk-averse investors with a solution that offers growth potential alongside principal protection.

How Innovation in Annuities Meets the Needs of Conservative Investors

The core appeal of this annuity product lies in opening new possibilities for investors approaching retirement. Traditionally, those nearing retirement tend to shy away from the risks and complexities of the crypto market. Now, through this product, they can gain exposure to Bitcoin’s growth potential without directly purchasing or holding Bitcoin, ensuring that their initial investment is not subject to the extreme volatility of crypto assets.

Robert Mitchnick, head of BlackRock’s Global Digital Asset Department, stated that this initiative is built on the tremendous success of IBIT and customer demand. Since its launch in 2024, IBIT has quickly become the largest and most liquid Bitcoin ETF in the market. It now plays a bridging role connecting traditional pension systems with the crypto asset market. Mitchnick pointed out that this structure allows insurance clients to participate in Bitcoin’s appreciation potential without the complexities and risks associated with direct ownership and custody of the assets.

Strategic Shift of Institutional Capital Toward Digital Assets

Delaware Life’s move reflects a broader industry trend—traditional financial institutions are redefining how they interact with digital assets. As a subsidiary of Group 1001, Delaware Life’s actions indicate that even the relatively conservative insurance industry is actively seeking compliant ways to offer clients exposure to crypto assets.

The success of IBIT is catalyzing this change. This Bitcoin ETF product is no longer just a direct investment tool for investors but also serves as foundational infrastructure for institutional product innovation. Traditional financial products such as annuities, funds, and investment portfolios are now leveraging mature tools like IBIT to incorporate Bitcoin, gradually integrating digital assets into the mainstream financial ecosystem.

New Perceptions of Bitcoin’s Market Position

From a macro perspective, Bitcoin’s recent market performance suggests a deeper shift in understanding. Notably, Bitcoin’s recent behavior does not exhibit the traditional inverse relationship with the US dollar. JPMorgan strategists have pointed out that the recent dollar weakness has been driven by short-term capital flows and market sentiment rather than fundamental growth or changes in monetary policy expectations. These analysts expect the dollar to stabilize again as the US economy’s fundamentals remain solid.

Since the market does not view the current dollar depreciation as a long-term structural change, Bitcoin is trading more like a risk asset sensitive to liquidity rather than a hedge against the dollar. This also explains why gold and emerging market assets have become the main beneficiaries of this dollar diversification phase. This re-positioning reminds investors that understanding the true role of assets in different market environments is crucial.

The innovation of Delaware Life and BlackRock’s annuity product is transforming the accessibility and acceptance of Bitcoin among traditional investors, gradually pushing digital assets into the mainstream financial sector.