The ongoing financial distress of Digital Currency Group (DCG) is not expected to have a significant impact on cryptocurrency prices, according to Mike Novogratz, CEO of Galaxy Digital Holdings. In an interview on CNBC’s Squawk Box, Novogratz said that while the situation is “not good news,” he does not believe it will lead to “a lot of selling.”

DCG is a major player in the cryptocurrency industry, as the owner and operator of Grayscale Investments, the world’s largest digital asset manager. It also owns institutional lending company Genesis, advisory firm Foundry, and owned crypto media company CoinDesk.

Novogratz’s opinion contrasts with a recent report from Arcane Research, which warned that the financial distress at DCG could have a severe impact on crypto markets. The report suggested that if DCG were to enter bankruptcy, it could be forced to liquidate assets and sell large positions in its Grayscale Bitcoin Trust and other crypto-related trusts, which would put pressure on crypto prices.

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