Bitcoin gains ground in retirement market with Equitable annuity option

Equitable has launched a bitcoin-linked RILA option tied directly to IBIT, adding to a growing number of annuity products offering crypto exposure. (AI-generated image)

By Noah Lopez

Equitable has added what it says is the first bitcoin-linked investment option available within a registered index-linked annuity, marking the latest effort by insurers to bring cryptocurrency exposure into retirement products.

The option is linked to the iShares Bitcoin Trust ETF, or IBIT, and allows investors to participate in bitcoin's performance while receiving a measure of downside protection.

Allocations generally will be limited to 25% of a contract's value, the company said.

The launch comes as interest in bitcoin continues to expand across the insurance and retirement industries.

Earlier this year, Delaware Life and Aspida introduced annuity products tied to indexes that include bitcoin exposure alongside other assets, including stocks and cash.

Equitable's offering takes a different approach.

Rather than linking performance to a broader index, the option is tied directly to IBIT.

Steve Scanlon, managing director and head of individual retirement at Equitable, said the company had received inquiries about a bitcoin-linked option for years.

"We've been asked over the years whether or not this was an option that we could provide," Scanlon said.

The move raises a broader question for the retirement industry: whether bitcoin is becoming a mainstream portfolio allocation or remains a niche investment aimed at a small but growing group of investors.

Growing advisor adoption

A January survey from Bitwise and VettaFi found that 32% of financial advisors allocated cryptocurrency in client accounts during 2025, up from 22% a year earlier.

The survey also found that 42% of advisors said they could purchase crypto investments for clients, compared with 35% in 2024 and 19% in 2023.

BlackRock's iShares Bitcoin Trust, the exchange-traded fund underlying Equitable's new option, has grown into the largest spot bitcoin ETF in the United States and manages tens of billions of dollars in assets.

Scanlon said advisor and client interest both played a role in developing the offering.

"I'd say it's 50-50," he said when asked whether demand came primarily from advisors or clients.

Scanlon said advisors frequently face questions from clients interested in cryptocurrency while also evaluating risk tolerance and retirement objectives.

Balancing demand and risk

According to Scanlon, advisors often find themselves balancing client interest in bitcoin against broader retirement planning considerations.

He said many investors want exposure to the asset class, while advisors remain responsible for determining whether that exposure fits within a client's overall financial plan.

"We felt that a very good way for clients who wanted to invest in bitcoin, but advisors didn't feel like it was part of their risk tolerance, that this was a good balance for them," he said.

Scanlon said the option was designed to allow clients to gain bitcoin exposure while remaining within the risk framework established by their advisors.

Direct exposure sets Equitable apart

Earlier bitcoin-related annuity products launched by Delaware Life and Aspida incorporated cryptocurrency exposure through broader index strategies that also included other assets.

Equitable elected to provide exposure through a direct link to IBIT.

Steven Mabry, senior vice president of annuity product development at Equitable, said development of the option began about 18 months ago.

Mabry said the company wanted a structure that closely tracked bitcoin rather than one built around a diversified index.

"There's no blending. There's no disconnect to the actual bitcoin price," Mabry said. "You will get the index performance subject to the cap and buffer."

Under the one-year RILA structure, investors can choose downside buffers of 10%, 15%, 20% or 40%, which absorb losses up to those levels before investors begin participating in market declines.

In exchange for that protection, gains are subject to a performance cap that is set at the start of each segment and can vary based on market conditions.

Mabry said IBIT was selected because of its size, liquidity and position within the spot bitcoin ETF market.

"The IBIT is the number one crypto ETF out there," Mabry said.

RILA market continues to expand

The launch also comes during a period of strong growth for registered index-linked annuities.

RILA sales reached nearly $80 billion in 2025, up 20% from the previous year and marking the category's 11th consecutive year of growth, according to LIMRA.

LIMRA projects RILA sales will exceed $85 billion in 2026 and continue growing through at least 2028.

As the market expands, insurers have continued introducing new index strategies and investment options, including products tied to digital assets.

Mabry said the 25% allocation limit was established after discussions with distribution partners.

"We wouldn't want somebody to put 100% in," he said. "They should diversify."

Scanlon said Equitable's review of the concept focused on whether bitcoin exposure could be offered in a way consistent with retirement investing.

"The only way we would have brought it out is with a buffer because it is a retirement account," he said.

Bitcoin's place in retirement portfolios

Scanlon said he does not view bitcoin as a core retirement allocation.

Instead, he said the company sees the option as a tool for addressing client interest in cryptocurrency while maintaining portfolio discipline.

"It's really a perfect compromise between a client [who] wants to buy this asset class they're interested in it, the advisor's got to maintain their fiduciary obligation to manage their risk, and they say, 'Yeah, I'm comfortable with you buying a little bit of this as long as we have guardrails around it,'" Scanlon explained.

Equitable said the bitcoin-linked option is being introduced as part of its latest Structured Capital Strategies Premier enhancements, which also include new index strategies, downside-protection features and shorter-duration segment options.