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

• Digital asset products saw net inflows of $176 million last week amid the overall market decline.
• Ethereum-based products saw the biggest inflows, posting $155 million as Bitcoin ETFs struggled.
• Marathon Digital could help Bitcoin rally following plans to buy back $250 million worth of BTC.

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

Crypto ETFs see positive flows amid market crash last week

Digital asset investment products saw net inflows of $176 million last week as the recent market crash prompted investors to buy the dip. While the market correction sent cryptoETF assets under management (AUM) down to $75 billion, after losing $20 billion during the correction, they quickly recovered to end the week at $85 billions of dollars.

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

Flows on the exchange country

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

Bitcoin ETFs, on the other hand, were hit hard early in the week by outflows, but saw inflows as the week progressed, bringing total net inflows to $13 million at the end of the week.

In addition, Short Bitcoin ETPs saw $16 million in outflows – the highest outflow since May 2023 – despite the market decline.

Flows on the 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 in convertible senior note offerings to buy more BTC.

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

Marathon’s potential purchase of Bitcoin could cause a brief spike in its price, as investors often act on the investment decisions of major institutions.