Galaxy Digital founder and CEO Mike Novogratz believes that the current market downturn means that two thirds of hedge funds that invest in cryptocurrencies and digital assets are destined to fail, according to a report by Bloomberg.

The report quotes comments made by the former Fortress Investment Group hedge fund manager at the recent Piper Sandler Global Exchanges & Brokerage Conference in New York.

Novogratz though remains optimistic about Galaxy Digital's prospects despite a 'catastrophic loss' from last month's collapse of the Terra blockchain and is planning to continue with its expansion plans while rivals are laying off staff.