BlackRock has partnered with Delaware Life to bring Bitcoin to a permanent index

Delaware Life Insurance Company, which provides annuity-based retirement solutions through a national network of financial advisors, is partnering with BlackRock to bring bitcoin to fixed indexed annuities through BlackRock's US Equity Bitcoin Risk Balanced 12% Index.

A fixed indexed annuity is a contract with an insurance company designed to provide growth linked to a market index while protecting the principal against loss.

Annuities earn interest based on the performance of a specific index, with profits limited by caps or participation rates. The account grows tax-deferred, and many FIAs allow you to convert the accumulated balance into a guaranteed income stream during retirement.

Under the partnership, Delaware Life has added the BlackRock US Equity Bitcoin Balanced Risk 12% Index to its three products, including Momentum Growth, Momentum Growth Plus and DualTrack Income.

“We are proud to partner with Blueware,” said Colin Lake, president and CEO of Delaware Life Marketing. “As the retirement-planning landscape continues to evolve, we are continually and innovatively thinking to meet the needs of financial professionals and their clients.”

BlackRock's benchmark combines US equities and Bitcoin exposure into a single benchmark, using volatile fund allocations to maintain a 12% volatility target. Bitcoin exposure comes from BlackRock's iShares Bitcoin Trust (IBIT), the largest Bitcoin ETF in assets under management and liquidity.

According to BlackRock's Global Head of Digital Assets, Robert Michnick, the launch responds to the growing demand for IBIT and allows insurance clients to combine Bitcoin exposure with a diversified annuity strategy.

The index is designed to provide a measure of participation in digital assets while maintaining key protection allowances, he said.