Shares of ProShares Bitcoin Strategy ETF (BITO), the first and long-awaited bitcoin ETF in the U.S., gained over 3% on Tuesday in its trading debut.

The ETF tracks CME bitcoin futures, not the popular cryptocurrency.

As of 1:20 p.m. ET on Tuesday, shares of ProShares Bitcoin Strategy were trading at $41.51, a gain of $1.51, or 3.77%.

Sean Farrell, Fundstrat Global Advisors head of digital asset strategy, told Yahoo! Finance that the ETF could trigger a rally that would see the cryptocurrency reach $168,000.

As of 1:40 p.m. ET, the price of bitcoin was trading at $63,258.46, up 1.96%.

Bitcoin has climbed 45% since September, reflecting the purchases of investors anticipating the release of the ETF.

"We think bitcoin demand will exceed the inflows for QQQ," Fundstrat Global Advisors CEO Tom Lee wrote. Lee expects bitcoin to continue to rise.

Bitcoin has experienced a tough battle in order to gain ETF approval from the Securities and Exchange Commission mostly due to its volatility. Most crypto exchanges are not registered with the SEC, making it difficult to verify trade flow.

SEC chairman Gary Gensler has previously compared the crypto market to the "Wild West." Treasury Secretary Janet Yellen and Sen. Elizabeth Warren, D-Mass., have asked the agency to crack down on the growing market.

Asset managers began applying to launch spot bitcoin ETFs in 2017 only to have their proposals rejected by the SEC, the agency said none of which were able to prove market resistance or manipulation.

“What you have here is a product that’s been overseen for four years by the U.S. Federal regulator CFTC, and that’s being wrapped inside of something within our jurisdiction called the Investment Company Act of 1940, so we have some ability to bring it inside of investor protection,” Gensler said Tuesday on CNBC’s "Squawk on the Street."

"It’s still a highly speculative asset class and listeners should understand that underneath this, it still has that same aspect of volatility and speculation."

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