Crypto market could be set for rebound following net inflows, Marathon's heavy Bitcoin buyback plan

Crypto investment products turned green last week after seeing net inflows of $176 million. Meanwhile, Marathon Digital (MARA) plans to add to its Bitcoin holdings with convertible note offerings worth $250 million as the crypto market recovery looks imminent.

Crypto ETFs record positive flows amid market crash last week

Digital asset investment products recorded net inflows last week totaling $176 million as the recent market crash potentially caused investors to buy the dip. While the market correction saw crypto ETFs' assets under management (AUM) drop to $75 billion after shedding $20 billion during the correction, they quickly recovered, closing the week at $85 billion.

Regionally, every country recorded inflows last week, showing global sentiment toward buying the dip. However, the US saw the highest inflows at $89 million, followed by Switzerland, Brazil, and Canada at $21.3 million, $19.9 million, and $19.2 million, respectively.

Flows by Exchange Country

Surprisingly, Ethereum-based products outperformed Bitcoin, seeing $155 million in net inflows amid the general market downturn. This brought its year-to-date net flows to $862 million, its highest since 2021.

On the other hand, Bitcoin ETFs were hit hard at the start of the week with outflows but recorded inflows as the week progressed, bringing its total net inflows to $13 million at the end of the week. 

Additionally, Short Bitcoin ETPs saw outflows of $16 million — its largest outflow record since May 2023 — despite the market dip.

Flows by Asset

Bitcoin is down 1.2% in the past 24 hours but could see a rally following Marathon Digital's plan to launch $250 million of convertible senior note offerings to buy more BTC.

The offerings will be redeemable in 2031, with an additional $37.5 million window for initial purchasers of the notes, wrote Marathon. "The notes will be unsecured, senior obligations of MARA and will bear interest payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2025," added Marathon.

Marathon's potential Bitcoin purchase could stir a brief rally in its price as investors often act based on the investment decisions of major institutions.