Universal Digital files preliminary prospectus for ETFs

Executive Summary

• Universal Digital Inc., in partnership with LongPoint Asset Management Inc., has filed a preliminary prospectus for the proposed launch of two new inverse leveraged exchange-traded funds (ETFs) in Canada.
• The proposed products are the LFG Daily (-2X) Coin Short ETF (ticker: COID) and the LFG Daily (-2X) MSTR Short ETF (ticker: MSTZ), which seek to deliver two times the inverse daily performance of Coinbase Global Inc. and MicroStrategy Inc., respectively.
• The ETFs are structured as alternative mutual funds, with LongPoint serving as the investment and portfolio manager, while Universal Digital acts as the promoter and brand partner. Listing on the Toronto Stock Exchange (TSX) is conditional upon regulatory approval.

Key Details

• Proposed Products:
  • LFG Daily (-2X) Coin Short ETF (COID): Seeks to deliver 2x inverse daily performance of Coinbase Global Inc.
  • LFG Daily (-2X) MSTR Short ETF (MSTZ): Seeks to deliver 2x inverse daily performance of MicroStrategy Inc.
• Structure and Listing:
  • Structured as alternative mutual funds.
  • Application for conditional listing approval on the Toronto Stock Exchange (TSX).
  • Both ETFs are expected to be listed and traded in Canadian dollars.
• Partnership Details:
  • Universal Digital and LongPoint entered into a partnership agreement on May 21, 2025.
  • Universal Digital acts as promoter and brand partner; LongPoint serves as investment fund manager and portfolio manager.
  • The partnership has previously co-launched two TSX-listed ETFs: COIU and MSTU.
• Regulatory Status:
  • Preliminary prospectus dated August 12, 2025, filed with securities commissions in all Canadian provinces and territories.
  • Available on SEDAR+.
  • Trading cannot begin until securities commissions issue receipts for the final prospectus and TSX listing is approved.

Notable Quotes

• Chris Yeung, CEO of Universal Digital: "Since launching our first ETFs with LongPoint earlier this year, we've been focused on expanding the product lineup to give investors more ways to access and manage exposure to the digital asset sector... Filing for these inverse leveraged ETFs marks another step forward in building a comprehensive suite of products that meet a broad range of trading and hedging objectives."
• Steve Hawkins, CEO of LongPoint: "LongPoint is thrilled to continue its partnership with Universal Digital to expand the LFG ETF lineup and bring these first-of-their-kind products to the Canadian market. We've seen strong demand from Canadians actively trading similar U.S.-listed ETFs, and, once listed, these ETFs will offer a homegrown alternative tailored to active Canadian investors."