On Friday, an exchange-traded product that shorts Bitcoin (BTC) hit a more than two-month high, as the world’s largest cryptocurrency led a dramatic slide in the market.

The 21Shares Short Bitcoin ETP, which trades in the exact opposite direction of BTC, has risen 5.4% in the last two days to its highest level since late February. This follows an 11% drop in BTC during the same time period when the token fell to its lowest level since the start of the Russia-Ukraine war.

This year, the value of short BTC ETP has skyrocketed

One of the best-performing assets this year is the short BTC ETP, which trades on European stock platforms. The ETP is now trading up roughly 8% year to date, considerably outperforming most of the top-50 cryptocurrencies.

According to 21Shares, the ETP aims to deliver a “-1x return on the performance of Bitcoin for a single day.” The ETP accomplishes this by borrowing BTC and selling it at the same time.

However, the asset management labels the product as high risk. Only investors ready to take on the risk of such an undertaking should consider 21Shares.

21Shares provides a bevvy of ETPs that track several cryptocurrencies. The fund manager just introduced a product that hedges both Bitcoin and Gold in a single contract.

Bitcoin short interest has reached a two-month high

Bearish positions on the cryptocurrency are at their highest since mid-March, according to a Bitfinex index that tracks short interest in BTC. The reading follows one of BTC’s worst drops of the year.

The coin is currently trading near its lowest price of the year, ranging from $35,000 to $36,000) (R562k- R578k). Traders anticipate additional losses in the token as fears of inflation and monetary tightening persist.

The Federal Reserve of the United States raised interest rates this week, as did central banks in the United Kingdom, Australia, and India. Several more banks have signalled to tighten actions in response to the recent increase in inflation.