American insurance company Delaware Life launches the industry’s first fixed indexed annuity linked to the BlackRock Bitcoin Balanced Index, with principal protection design officially connecting retirement funds to crypto assets.
(Background summary: Meanwhile, “Bitcoin life insurance” secures $40 million in funding. What are its features? Anti-inflation, Sam Altman)
(Additional background: MicroStrategy Strategy invests an additional $2.1 billion and acquires 22,305 BTC! Total holdings officially surpass 700,000 BTC)

Table of Contents

• Product Structure: Principal Lock-in, Cap on Returns
• Policy Window: Trump Administration Approves Retirement Plan Holdings
• Suitable Demographics and Potential Impact

On the 20th, Delaware Life announced the launch of its first fixed indexed annuity linked to Bitcoin (FIA). The product is based on the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index designed by BlackRock, marking the official integration of traditional retirement funds into crypto assets.

The “12%” in the index refers to its volatility control target. During periods of intense market fluctuation, the index increases cash holdings to reduce risk; when the market stabilizes, it increases asset allocation to pursue returns. The goal is to keep overall annual volatility around 12% (roughly aligning with the long-term average volatility of U.S. stocks), making the investment process more stable.

Product Structure: Principal Lock-in, Cap on Returns

According to the announcement, the annuity contract guarantees principal protection at maturity. About 74% of the index investment portfolio tracks the S&P 500, 21% to 25% indirectly holds Bitcoin through BlackRock spot ETF (IBIT), with the remaining in cash positions.

Meanwhile, the index algorithm dynamically increases cash holdings during Bitcoin’s sharp fluctuations, maintaining annualized volatility at 12%. Additionally, if the market surges, investors can only receive a pre-set capital gain cap (Cap Rate), with excess returns accruing to the institution as hedging and management fees.

Policy Window: Trump Administration Approves Retirement Plan Holdings

The product’s implementation is closely related to the executive order signed by Trump on August 7, 2025. The order permits 401(k) and other retirement plans to allocate digital assets, reducing regulatory barriers for insurers. Delaware Life’s marketing director explained in an interview that the new plan is a “thoughtful innovation.”

With policy approval and a mature ETF ecosystem, conservative institutions are willing to try including Bitcoin in annuities.

Target Demographics and Potential Impact

These types of annuities target conservative investors who want exposure to Bitcoin but are unwilling to risk principal loss. By the end of 2025, the index experienced a 3.16% decline over three months due to Bitcoin’s correction, indicating that while returns are suppressed, volatility remains significantly lower than the spot market. As pension systems continue to incorporate crypto assets, some Bitcoin holdings will be locked in low-turnover products long-term, potentially reducing panic selling pressure and stabilizing liquidity over the medium to long term.

Delaware Life’s FIA repositions Bitcoin from a “high volatility, high technical barrier” asset to a yield source that can be integrated into conservative portfolios. Behind this shift, traditional finance is transforming crypto assets into a new type of retirement market asset through financial engineering and policy space.