Equitable Holdings integrates bitcoin exposure into its retirement annuity lineup while managing record inflows and a pending Corebridge merger, despite GAAP accounting volatility.
Equitable launched a bitcoin-linked annuity option, reported record AUM and strong inflows, but also posted a GAAP net loss and still faces pending Corebridge merger approval.
Bitcoin gains a new distribution channel through a retirement annuity product, broadening access for conservative investors while still capping exposure at 25% of contract value.
Corebridge's merger with Equitable received shareholder approval and is expected to add more than 10% to EPS by 2028, but still requires regulatory sign-off.
Equitable chose the iShares Bitcoin Trust ETF as the tracking vehicle for its new annuity bitcoin-linked option, potentially increasing demand for the ETF.
AllianceBernstein is referenced mainly as Equitable's stake whose valuation method affects book value calculations.
Equitable Holdings has introduced the industry's first bitcoin-linked annuity option, allowing retirement investors to gain exposure to the iShares Bitcoin Trust ETF with defined downside protection. Despite posting a $453 million GAAP net loss, the firm reported record assets under management of $1.2 trillion and continues to advance its pending merger with Corebridge Financial.
The option tracks the iShares Bitcoin Trust ETF and offers downside protection through buffers of 10% to 40%, with total bitcoin exposure capped at 25% of the contract value.
Shareholders approved the merger on July 30, and management expects it to be accretive to EPS by 2028, though the deal still requires final regulatory sign-off.