The US insurance industry has taken new steps again. Delaware Life, a subsidiary of Group 1001, announced yesterday that it has partnered with BlackRock to include the BlackRock US Stock Bitcoin Balanced Risk 12% Index in its fixed indexed annuity product line, breaking new ground in the US insurance sector—this is the first time Bitcoin exposure has been introduced into an annuity policy.

In simple terms, this new product gives ordinary policyholders the opportunity to indirectly participate in the Bitcoin market under the protection of insurance. It sounds a bit novel, but the underlying logic is actually quite clear.

How is the product structured? BlackRock combines the US stock market with its own iShares Bitcoin Trust ETF, and then uses a dynamic cash adjustment mechanism to keep the overall volatility anchored at 12%. This way, the wild fluctuations of Bitcoin are smoothed out.

Fixed indexed annuities have always been seen as a conservative choice, with the core appeal being one word—stability. The policyholder’s principal is backed by the insurance company, so they won’t lose money when the market drops. When the index rises, they can enjoy some gains; when it falls, the returns during that period are usually break-even rather than a loss. This asymmetric return structure is quite attractive to conservative investors.

Robert Mitchnick, Global Head of Digital Assets at BlackRock, has recognized this—allowing policyholders to enjoy insurance protection while also sharing in the growth dividends of digital assets. The significance of this move lies in creating a feasible combination of the stability of traditional finance and the growth potential of emerging asset classes.