Shares of ProShares UltraShort Bloomberg Natural Gas ( KOLD ) , a leveraged ETF designed to deliver twice the inverse daily performance of natural gas futures, surged 12.4% to $47.36 on Friday as U.S. natural gas prices dropped over 7% to $3.39 per MMBtu at the Henry Hub, marking their lowest level in a week.

KOLD benefits when natural gas prices decline, and Friday’s sharp drop was driven by a smaller-than-expected inventory withdrawal of 116 Bcf, compared to analyst forecasts of 127 Bcf.

Additionally, milder mid-January weather projections, with fewer heating degree days than previously estimated, weighed on natural gas demand expectations.

The combination of softer demand forecasts and reduced market momentum bolstered KOLD Friday afternoon, which thrives in bearish natural gas environments. However, investors should remain cautious as the ETF’s leveraged nature amplifies market volatility and risks.

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According to data from Benzinga Pro, KOLD has a 52-week high of $88.32 and a 52-week low of $32.52.