Delaware Life, a leading provider of annuity products, has partnered with BlackRock, the world’s largest asset manager, to launch a Fixed Indexed Annuity (FIA) that allows retail investors to gain indirect exposure to Bitcoin performance. This offering represents a significant milestone in the integration of digital assets into traditional retirement planning products.
The new FIA is designed to offer principal protection against market downturns, a core feature of indexed annuities, while linking interest crediting to the performance of a specialized index managed by BlackRock. This index strategically incorporates assets or financial instruments that are correlated with the price movements of Bitcoin, often utilizing futures contracts or regulated ETFs that track the cryptocurrency.
Crucially, investors are not directly holding Bitcoin or exposed to its full volatility. Instead, the index caps both potential gains and losses. If the linked index performs well, the annuity holder receives interest credits up to a predetermined maximum rate; if the index falls, the annuity’s value remains stable (excluding fees), guaranteeing the principal.
This collaboration leverages BlackRock’s expertise in constructing diversified, volatile-asset-sensitive indices and Delaware Life’s robust delivery platform for insurance products. The product addresses the growing demand from conservative retirement savers who seek the high-growth potential of digital assets but require the security and tax-deferred benefits of an insurance wrapper.
Source: Delaware Life, BlackRock Offer Bitcoin Exposure Through Fixed Indexed Annuity
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