Capital Group, a respected mutual fund company with a 94-year history, is known for its conservative investment strategies. Recently, the firm has made a significant investment in bitcoin, marking a change in its outlook. This initiative is led by Mark Casey, a skilled portfolio manager inspired by Benjamin Graham and Warren Buffett. Casey views bitcoin as an incredible innovation and has overseen a rise in investments from under $1 billion to over $6 billion in bitcoin-related companies over the last four years.

Bitcoin As A Valuable Store Of Wealth

Casey sees bitcoin as a modern asset that can effectively serve as a store of wealth, even surpassing gold. He believes that bitcoin’s value will either match or exceed gold’s share of global wealth, although he is doubtful about the long-term prospects of other cryptocurrencies like ether. With a major asset manager giving this fresh perspective, we should view it as a signal of long-term confidence in the market. This means that any significant drops in bitcoin’s price in the near future could attract considerable institutional buying. For derivative traders, this reinforces the approach of selling put options during downturns, as these large investors may help stabilize the market. The ongoing comparison of bitcoin to gold, first noted last year, continues to drive institutional interest. As of September 2025, Bitcoin’s market cap is just below $2 trillion, which is a small fraction of gold’s estimated $16 trillion. This gap suggests that bitcoin has significant growth potential if it captures even a small share of the store-of-value market currently held by gold.

Long Term Call Options Strategy

This situation creates a good opportunity for long-term call options, specifically targeting strike prices for mid-2026. Following a summer of price stability, recent data from analytics firm Glassnode shows a notable drop in BTC supply on exchanges, similar to what happened before the major rally in early 2025. The implied volatility for these longer-term contracts has not yet adjusted to this reduction in supply, representing a potential opportunity. Skepticism towards cryptocurrencies like ether should guide our strategy as well. Over the past year, the BTC-ETH price ratio has increased more than 15% since attempts to launch spot Ether ETFs did not lead to sustained investment. A pairs trade, going long on bitcoin futures while shorting ether futures, remains a practical strategy to protect against a broader market downturn while betting on bitcoin’s strong performance. Current derivatives data supports a cautiously optimistic approach. Open interest in Bitcoin call options for December 2025 is heavily tilted toward strike prices above $110,000, indicating that the market expects another upward movement by year-end. Therefore, creating bull call spreads could be an effective way to position for this anticipated move while limiting potential risks. Create your live VT Markets account and start trading now.

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