The SEC has given its approval for the first crypto index exchange-traded funds (ETFs) from Hashdex and Franklin Templeton. This is a significant development for the U.S. crypto ETF market.

The ETFs will primarily hold spot Bitcoin and Ether, with an allocation of approximately 80% Bitcoin and 20% Ether. They are scheduled to launch in January.

The Hashdex Nasdaq Crypto Index U.S. ETF will be traded under the ticker NCIQ, while Franklin Templeton's fund will use the ticker EZPZ. The SEC's approval was granted after some initial delays and is based on the funds' compliance with established criteria for other crypto ETFs. It is worth noting that 11 spot Bitcoin ETFs were launched in January and have attracted over $36 billion in net inflows. On the other hand, spot Ethereum ETFs have seen more modest interest, with around $2.4 billion in net inflows since their introduction in July. The involvement of BitGo and Coinbase as core custodians for both funds is expected to increase investor confidence.