The UK Financial Conduct Authority (FCA) has recently made a significant move by lifting the ban on retail investors buying cETNs! This ban has been in effect since January 2021, and now it has been more than three years. Why was it banned back then? Mainly because it was believed that the price fluctuations of these products were too great, akin to riding a roller coaster, and the average person did not have any genuine investment demand. However, the situation has changed, and the new regulations will officially take effect on October 8!

In simple terms, what this means is that cETNs, which were previously off-limits to small retail investors, can now be traded again. What is a cETN? In simple terms, it is a financial product linked to cryptocurrencies, which you can understand as a "crypto version" of stocks or funds. The FCA previously deemed the risks too high, fearing that the public might lose everything, so they imposed a ban.

Now that the ban is suddenly lifted, it’s likely because they believe the market has matured somewhat and that regulators have gained experience. However, we ordinary investors still need to be cautious, as these products carry significant risks. Just think about it; even Bitcoin, a major player, can fluctuate by 20-30% in a single day. How stable can products linked to it be?

After October 8, the public in the UK will be able to buy and sell these products on regulated exchanges. However, I advise everyone not to go all in right away; you can start with a small amount to test the waters. Financial products are like eating hot pot; you need to first taste the spiciness, don’t dive straight into the spicy oil pot, or your stomach won’t be able to handle it!