Shares of the first US bitcoin-linked exchange-traded fund rose on their first day of trading on Tuesday, sending the cryptocurrency to a six-month high. The fund tracks CME bitcoin futures, not the cryptocurrency itself.

The ProShares Bitcoin Strategy ETF, with the ticker “BITO”, closed 4.8% higher at US$41.94 on the New York Stock Exchange. Bitcoin surged to US$64,367, near its peak of US$64,888. Investors of the ETF are seen as taking a longer-term view of the cryptocurrency.

Trading was heavy, with about 24 million shares worth nearly US$1 billion changing hands.

The US Securities and Exchange Commission has long been reluctant to allow cryptocurrencies to trade on national stock exchanges owing to their volatility and regulatory concerns over the industry itself. It finally gave the green light to an ETF based on bitcoin futures, thereby allowing investors to gain exposure to the digital asset without having to open an account with a crypto exchange.

ProShares chief executive officer Michael Sapir says: “We believe a multitude of investors have been eagerly awaiting the launch of a bitcoin-linked ETF after years of efforts to launch one. BITO will open up exposure to bitcoin to a large segment of investors who have a brokerage account and are comfortable buying stocks and ETFs, but do not desire to go through the hassle and learning curve of establishing another account with a cryptocurrency provider and creating a bitcoin wallet or are concerned that these providers may be unregulated and subject to security risks.”

“BITO will continue the legacy of ETFs that provide investors convenient, liquid access to an asset class,” Sapir continues. “1993 is remembered for the first equity ETF, 2002 for the first bond ETF, and 2004 for the first gold ETF. 2021 will be remembered for the first cryptocurrency-linked ETF.”

ProShares is a US provider of specialized exchange-traded products such as leveraged, inverse and volatility exchange-traded instruments. In July 2021, its affiliate company ProFunds launched the first bitcoin-linked mutual fund in the United States.

Another ETF using a cryptocurrency derivative as its underlying asset, the Valkyrie Bitcoin Strategy ETF, is awaiting clearance to list on Nasdaq. Invesco earlier this week dropped a plan to issue a bitcoin futures product, but is apparently pursuing efforts to launch an ETF tracking the price of the bitcoin.