Delaware Life Bridges TradFi and Crypto with First Bitcoin-Linked Annuity

TL;DR (Key Points)

Industry First: Delaware Life has become the first insurance carrier to integrate a cryptocurrency-linked index into its Fixed Index Annuity (FIA) portfolio.
The Index: The new offering utilizes the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index, which blends U.S. equities with the iShares Bitcoin Trust ETF (IBIT).
Principal Protection: Investors can gain exposure to Bitcoin’s price movements while maintaining the 100% principal protection inherent to FIA products.
Risk Management: The index targets a 12% volatility level through dynamic adjustments between equities, Bitcoin, and cash.
Product Availability: The index option is available on the Momentum Growth™, Momentum Growth Plus™, and DualTrack Income™ annuity products.

The landscape of retirement planning is undergoing a seismic shift in 2026. For decades, the insurance industry was defined by its conservative approach to asset management, often avoiding “volatile” emerging technologies until they reached absolute maturity. That era ended on January 20, 2026, when Delaware Life Insurance Company announced a groundbreaking partnership with BlackRock. By adding the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index to its portfolio, the company has officially bridged the gap between traditional fixed-income security and the high-growth potential of digital assets.

This move is more than just a product update; it represents the first time a U.S. insurance carrier has offered a cryptocurrency-linked index within a Fixed Index Annuity (FIA). For retirees and conservative investors who have watched the “digital gold” narrative from the sidelines, this integration offers a way to participate in the crypto economy without the risk of losing their initial investment.

Understanding the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index

The core of this new offering is a sophisticated index designed by BlackRock, the world’s largest asset manager. The index does not simply “buy Bitcoin.” Instead, it employs a multi-asset strategy that balances growth with a strictly managed risk profile.

The Ingredients: Equities, IBIT, and Cash

The index is composed of three primary building blocks:

U.S. Equities: Primarily the iShares Core S&P 500 ETF (IVV), providing a foundation of broad market exposure.
Bitcoin Exposure: Facilitated through the iShares Bitcoin Trust ETF (IBIT), which has become one of the most liquid and successful ETPs in history since its launch in 2024.
Cash Constituent: A cash component used to dial risk up or down based on market conditions.

The 12% Volatility Target

One of the most impressive features of this index is its “Balanced Risk” mechanism. Bitcoin is famously volatile, which can be a deterrent for annuity providers. To solve this, the BlackRock index targets a 12% volatility level. When Bitcoin’s price swings become too aggressive, the index dynamically shifts its weighting toward U.S. equities or cash. Conversely, in calmer markets, it can increase exposure to Bitcoin (capped at 25% of the risky basket) to capture upward momentum. This ensures that the interest credited to the Delaware Life policyholder is based on a smoothed, professionally managed growth curve rather than a chaotic crypto chart.

Why Fixed Index Annuities (FIAs) are the Perfect Vehicle

To appreciate why this launch is a milestone, one must understand the mechanics of an FIA. Unlike a direct investment in a crypto exchange, an FIA is a contract with an insurance company. The principal you contribute is 100% protected from market downturns.

The Floor and the Cap

In an FIA, the insurance company uses a portion of its options budget to track the performance of an external index—in this case, the BlackRock Bitcoin-linked index.

If the index goes up: The policyholder is credited with interest based on that growth (subject to a cap or participation rate).
If the index goes down: The policyholder’s account value remains unchanged. They do not lose a single cent of their principal due to market performance.

For the first time, Delaware Life is allowing investors to say: “I want to see if Bitcoin hits $150,000, but I don’t want to risk my retirement savings if it crashes back to $40,000.” This “best of both worlds” scenario is the primary driver behind the massive demand for this new index option.

Strategic Innovation at Delaware Life and Group 1001

This launch didn’t happen in a vacuum. It is a direct result of the forward-thinking culture at Delaware Life and its parent company, Group 1001. Founded with the goal of making insurance more intuitive and accessible, Group 1001 has consistently pushed for technological integration in the financial sector.

A Milestone for Bitcoin’s 17th Anniversary

The timing of the announcement was symbolic, coinciding with the 17th anniversary of the Bitcoin genesis block and the 2nd anniversary of the IBIT ETF. Colin Lake, President & CEO of Delaware Life Marketing, highlighted that as the retirement landscape evolves, so too must the tools used by financial professionals. By providing “opportunity for growth with protection,” the firm is addressing the primary concern of the 2026 investor: inflation-beating growth without catastrophic risk.

The Role of IBIT in the “TradFi” Revolution

A key factor that made this integration possible was the success of the iShares Bitcoin Trust (IBIT). Before spot ETFs were approved in 2024, an insurance company like Delaware Life would have faced insurmountable regulatory and custodial hurdles to offer crypto exposure.

With IBIT, Bitcoin is packaged in a familiar, regulated, and highly liquid ETF wrapper. BlackRock’s Robert Mitchnick noted that the success of IBIT among institutional and retail clients paved the way for this next logical step: moving Bitcoin exposure into the annuity space. It validates Bitcoin’s status as a legitimate asset class that deserves a place alongside the S&P 500 in a diversified retirement portfolio.

Market Trends: Why 2026 is the Year of the Crypto Annuity

The broader economic context of 2026 has made this product particularly timely. Following the 2025 executive order that clarified the role of digital assets in retirement plans, financial advisors have been searching for compliant ways to fulfill client requests for “a little bit of crypto.”

The Inflation Hedge Argument

With global debt levels remaining high and traditional “60/40” portfolios struggling to provide real returns in some sectors, Bitcoin has emerged as a preferred alternative asset. However, for a 65-year-old retiree, buying Bitcoin on an exchange is often too risky or technically complex. By wrapping that exposure inside a Delaware Life annuity, the complexity is removed, and the risk is mitigated.

Diversification in a Volatile World

The BlackRock index’s ability to combine the stability of the S&P 500 with the “alpha” of Bitcoin provides a unique diversification profile. Historically, Bitcoin has shown low correlation with traditional stocks during certain market cycles. Adding it to a portfolio can potentially improve the “Efficient Frontier”—the point where an investor gets the maximum return for a given level of risk.

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Conclusion: A New Standard for Retirement Income

The introduction of the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index by Delaware Life marks the beginning of a new era. It proves that “security” and “innovation” are not mutually exclusive. As more insurance carriers likely follow suit, this moment will be looked back upon as the point when cryptocurrency officially moved from the fringes of finance into the core of the American retirement dream.

Whether you are a financial professional looking for a way to differentiate your practice or an investor seeking a protected entry point into the digital asset space, the products offered by Delaware Life represent a significant leap forward. The “Privacy Frontier” is not just about cryptography; it is about the freedom to grow your wealth on your own terms, with the safety net you deserve.