Why is ETHA implied volatility higher right now

The implied volatility of ETHA (iShares Ethereum Trust ETF) is higher due to several factors: 1. **Market Sentiment and Institutional Interest**: ETHA has seen significant institutional inflows, with assets under management (AUM) surpassing $10 billion, indicating strong investor confidence and potential for price volatility. 2. **Ethereum Price Surge**: The Ethereum price has surged past $4,000 for the first time since December 2024, with a 24-hour trading volume reaching nearly $39 billion, reflecting heightened market activity and volatility. 3. **Upcoming Network Upgrades**: The upcoming Dencun upgrade and Pectra upgrade are expected to improve Ethereum's network efficiency and reduce transaction costs, which could lead to increased volatility as the market reacts to these changes. 4. **Potential Staking Incentives**: BlackRock's proposal to allow ETHA to stake its holdings directly or through trusted sources, with staking rewards considered fund revenue, could increase the ETF's income stream and potentially boost returns, thereby raising implied volatility. These factors combined create a environment where ETHA's implied volatility is likely to remain elevated.