Capital Group, a well-established mutual fund firm with a 94-year history, is renowned for its conservative investment approach. The firm has recently made a major investment in bitcoin, signalling a notable shift in perspective.
This move is spearheaded by Mark Casey, an experienced portfolio manager influenced by Benjamin Graham and Warren Buffett. Casey describes bitcoin as an extraordinary innovation and has managed investments increasing from under $1 billion to over $6 billion in bitcoin-related companies within the last four years.
Bitcoin As A Valuable Store Of Wealth
Casey regards bitcoin as a modern asset that can serve as a valuable store of wealth, surpassing gold in this aspect. He believes bitcoin’s value will eventually align with or exceed gold’s portion of global wealth, though he is sceptical about the long-term value of other cryptocurrencies like ether.
With this old perspective from a major asset manager gaining attention, we should consider it a sign of a structural long-term bid in the market. This suggests that any significant dips in bitcoin’s price in the coming weeks will likely be met with substantial institutional buying. For derivative traders, this reinforces the strategy of selling put options on weakness, as these large players may provide a floor under the market.
The comparison of bitcoin to gold, a view expressed last year, continues to be a primary driver of institutional interest. As of September 2025, Bitcoin’s market capitalization sits just under $2 trillion, still a fraction of gold’s estimated $16 trillion. This valuation gap implies significant room for growth if bitcoin captures even a small, additional share of the store-of-value market from gold.
Long Term Call Options Strategy
This creates a favorable setup for long-dated call options, specifically targeting strike prices for mid-2026. After a summer of consolidation, recent data from analytics firm Glassnode shows a significant decrease in BTC supply on exchanges, a trend last seen before the major rally in early 2025. The implied volatility on these longer-term contracts has not yet caught up to this supply squeeze, presenting a potential opportunity.
The skepticism towards other cryptocurrencies like ether should also inform our strategy. We have seen this play out over the past year, with the BTC-ETH price ratio rising over 15% since the implementation of spot Ether ETFs failed to generate sustained inflows. A pairs trade, going long bitcoin futures while shorting ether futures, remains a viable strategy to hedge against market-wide downturns while betting on bitcoin’s continued outperformance.
Current derivatives data supports a cautiously bullish stance. Open interest in Bitcoin call options for the December 2025 expiry is heavily skewed towards strike prices above $110,000, indicating market anticipation of another leg up before year-end. Therefore, structuring bull call spreads could be an effective way to position for this expected move while capping potential downside risk.
