Gas ETF Gains $518 Million in Flows Despite Price at Record Low

Investors continued to increase their bets on two exchange-traded funds tied to natural gas as prices for the heating fuel show signs of bottoming following a seven-week selloff that sent the commodity plunging more than 60%.

The $1.1 billion ProShares Ultra Bloomberg Natural Gas (ticker BOIL) saw $146 million in inflows in the latest session, which increased the fund’s assets by 15% to its highest level in at least a year, according to data compiled by Bloomberg. The fund has seen eight straight days of inflows, amounting to $517.8 million, even though its price is hovering at its record low.

Meanwhile, the $1 billion United States Natural Gas Fund LP (UNG) also saw investors pile in cash consistently during the month of January — barring one session — pushing the fund’s assets to above the billion-dollar mark, according to data compiled by Bloomberg. Its price, too, has dropped significantly since the start of the year.

Natural gas futures have nearly halved this year to the lowest levels since 2020 as abnormally mild winter temperatures have eroded US demand for heating. A prolonged shutdown at a major Texas export facility in Freeport has also weighed on prices, while signs that the terminal could resume shipments Feb. 11 have provided some support to the commodity this week. The Freeport LNG has the capacity to export roughly 2% of US daily gas production.