The Canadian investment landscape is evolving rapidly, with innovative financial products paving the way for more dynamic trading opportunities. LongPoint Asset Management Inc. (“LongPoint”) and Universal Digital Inc. (CSE: LFG) (FSE: 8R20) (“Universal Digital”) have taken a significant step forward by filing a preliminary prospectus for two new double-leveraged single stock ETFs — the LFG Daily (2X) COIN Long ETF (“COIU”) and the LFG Daily (2X) MSTR Long ETF (“MSTU”). These proposed exchange-traded funds aim to deliver twice the daily return of two high-profile U.S. stocks: Coinbase Global Inc. (NASDAQ: COIN) and MicroStrategy Inc. (NASDAQ: MSTR).
If approved, COIU and MSTU will become Canada’s first double-leveraged ETFs tied directly to individual equities, marking a milestone in the expansion of leveraged investment vehicles within the Canadian market. The LFG ETFs have applied for conditional listing approval on the Toronto Stock Exchange (TSX), where they would trade in Canadian dollars, offering local investors a convenient and cost-effective alternative to U.S.-listed equivalents.
A Strategic Partnership Driving Innovation
This initiative stems from a strategic partnership between LongPoint, an emerging leader in leveraged ETF solutions, and Universal Digital, a forward-thinking investment firm focused on blockchain and digital asset innovation. By combining LongPoint’s regulatory expertise and ETF operational infrastructure with Universal Digital’s deep understanding of the crypto ecosystem, the collaboration aims to bridge traditional finance with next-generation financial technologies.
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Steve Hawkins, CEO of LongPoint, emphasized the significance of this move:
“LongPoint is thrilled to be working with Universal Digital to develop the LFG ETFs, and we see this announcement as the first step in an exciting partnership based on each company's expertise in their respective fields. Combining LongPoint's ETF expertise with Universal Digital's expertise with blockchain and crypto will result in ETFs that add value for active Canadian investors.”
He added:
“We continue to see benefits from our flexible platform, allowing our partners like Universal Digital to focus on their own areas of expertise while we manage and administer the ongoing operations of the ETFs.”
Tim Chan, CEO of Universal Digital, echoed this sentiment, stating:
“We are proud to partner with LongPoint, an innovative ETF manager with a strong compliance and operational foundation. These ETFs offer Canadian investors unique access to amplified exposure to some of the most influential companies in the digital asset space and reflect our broader strategy to provide efficient investment vehicles that bridge traditional finance with Web3 innovation.”
Understanding the LFG ETFs: Structure and Objectives
The LFG ETFs are designed to achieve 2X leveraged daily returns — before fees and expenses — relative to the performance of their underlying stocks. Specifically:
- COIU seeks to deliver 200% of the daily return of Coinbase Global Inc.
- MSTU aims for 200% of the daily return of MicroStrategy Inc.
It’s important to note that these are daily-reset leveraged products, meaning they rebalance each day to maintain 2X exposure. As such, they are not intended for long-term buy-and-hold strategies. Due to the compounding effects of daily resets — especially in volatile markets — returns over periods longer than one day can deviate significantly from twice the cumulative return of the underlying stock.
Additionally, the ETFs will not hedge U.S. dollar exposure, but will trade exclusively in Canadian dollars on the TSX, reducing currency conversion friction for domestic investors.
Target Audience and Risk Profile
The LFG ETFs fall under the category of alternative mutual funds, which allows them greater flexibility in using leverage and unconventional investment strategies compared to standard mutual funds. However, this flexibility comes with heightened risk.
These ETFs are highly speculative and best suited for experienced, sophisticated traders who actively monitor their positions. Investors should understand that:
- Leverage magnifies both gains and losses
- A single-day drop of 50% or more in the underlying stock could result in a total loss of investment
- Holding beyond one day may lead to returns that differ significantly — even in direction — from 2X the multi-day performance of the target stock
As such, these products are ideal for short-term tactical plays rather than long-term wealth accumulation.
Regulatory Status and Availability
The preliminary prospectus for the LFG ETFs was filed on May 20, 2025, with securities regulators across all Canadian provinces and territories. It is available for review on www.sedarplus.ca. However, investors cannot currently purchase shares in these ETFs. Trading will only commence once final prospectus receipts are issued by the relevant authorities and TSX listing is confirmed.
LongPoint’s Growing ETF Ecosystem
LongPoint has positioned itself at the forefront of Canada’s leveraged ETF innovation. In December 2024, it launched Canada’s first ETFs offering up to 2X leveraged and inverse exposure to crude oil and natural gas. More recently, it made history by listing the country’s first triple-leveraged index ETFs on the TSX.
With the proposed launch of COIU and MSTU, LongPoint is poised to introduce Canada’s first double-leveraged single stock ETFs, subject to regulatory approval. The firm also operates a unique Partnership ETF platform, which streamlines the process for financial innovators like Universal Digital to bring new products to market without managing complex back-end operations.
Core Keywords
- Leveraged ETF Canada
- Coinbase ETF
- MicroStrategy ETF
- 2X leveraged ETF
- Canadian crypto investment
- Single stock ETF
- Daily reset ETF
- TSX-listed ETF
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Frequently Asked Questions (FAQ)
Q: What are COIU and MSTU?
A: COIU and MSTU are proposed double-leveraged ETFs designed to deliver twice the daily return of Coinbase (COIN) and MicroStrategy (MSTR), respectively. They are not yet available for trading.
Q: Are these ETFs suitable for long-term investors?
A: No. Due to daily rebalancing and compounding effects, these ETFs are intended for short-term, active trading strategies only.
Q: Will the ETFs be traded in Canadian dollars?
A: Yes. Both COIU and MSTU will trade in CAD on the TSX, making them accessible and convenient for Canadian investors.
Q: What risks are associated with leveraged ETFs?
A: These products use significant leverage, which can amplify losses. In volatile markets, investors may lose substantial capital quickly — even their entire investment in a single day.
Q: Who manages the LFG ETFs?
A: LongPoint Asset Management Inc. is responsible for managing and administering the ETFs, leveraging its specialized platform for partner-driven product development.
Q: When will the LFG ETFs be available?
A: They are not yet available. Trading will begin only after final regulatory approval and official listing on the TSX.
Final Thoughts
The proposed launch of COIU and MSTU represents a pivotal moment in Canada’s financial evolution. By bringing U.S.-style leveraged single stock ETFs to Canadian markets, LongPoint and Universal Digital are empowering active investors with tools previously unavailable domestically.
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While these products carry substantial risk, they also open doors for sophisticated traders seeking amplified exposure to key players in the digital asset ecosystem — all within a regulated, transparent, and CAD-denominated framework. As regulatory review progresses, market participants will be watching closely to see when — and how — these groundbreaking ETFs enter the market.