BlackRock (BLK) has launched a new Bitcoin (BTC) annuity for U.S. retirees.
BlackRock, which is the world’s largest asset manager, has partnered with the Delaware Life Insurance Company to offer what’s being called the first cryptocurrency-linked annuity.
The companies said the annuity will provide Bitcoin exposure through BlackRock’s iShares Bitcoin Trust ETF (IBIT), the largest exchange-traded fund that tracks the spot price of Bitcoin.
An annuity is a financial contract, typically with an insurance company, where people make a lump-sum payment in exchange for a guaranteed regular income.
The new annuity comes after the administration of U.S. President Donald Trump changed regulations to allow more investments in crypto, including in American retirement accounts.
Previously, cryptocurrencies such as Bitcoin were excluded from retirement funds as they were deemed too risky.
“This launch builds around the tremendous success and client demand we have seen for IBIT, enabling insurance clients to now add Bitcoin exposure as part of a broader indexed annuity strategy,” said BlackRock in a news release.
Some analysts and retirement experts are warning seniors against crypto exposure in their retirement accounts, saying that digital assets remain volatile.
Bitcoin is currently trading at $89,500 U.S., having declined 15% over the last 12 months.
