This Week In Cryptocurrency: Fidelity Launches Crypto Services Company, ICO Study Reveals Terrible Returns

The cryptocurrency market finished a solid week on a high note on Friday, with most major currencies trading up on the day.

Here’s a look at some of the headlines that were moving the cryptocurrency market this week and which currencies were on the move.

Headlines

On Monday, Fidelity announced it's launching a new company called Fidelity Digital Asset Services that will cater specifically to cryptocurrency custody and services.

One of the biggest criticisms of cryptocurrencies in the early stages of their development are that they're difficult for the average investor to access and that they will need to become mainstream in order to survive and thrive. While a number of cryptocurrency-oriented financial services companies have sprung up in recent years, Fidelity is the first traditional Wall Street form to provide cryptocurrency solutions like custody.

On Thursday, a federal judge ordered cryptocurrency hedge fund Gelfman Blueprint and CEO Nicholas Gelfman to pay a $2.5 million fine for operating a fraudulent Ponzi scheme. The court ruled Gelfman’s claims that from 2014 to 2016 his firm’s algorithm called “Jigsaw” was generating substantial returns were unsubstantiated.

On Friday, a Ernst & Young report revealed about a third of all cryptocurrencies financed via online sales in 2017 have lost “substantially all value.” The report found that 86 percent of coins sold via ICOs last year are now trading below their initial sale price.

Price Action

The Bitcoin Investment Trust GBTC traded at $7.04, up 2.8 percent for the week.

Here’s how several top crypto investments fared this week. Prices are as of 3:30 p.m. ET and reflect the previous seven days.

• Bitcoin gained 2.8 percent to $6,469;
• Ethereum gained 3.3 percent to $204;
• XRP gained 7.0 percent to 45 cents;
• Bitcoin Cash declined 0.6 percent to $442;
• EOS gained 2.6 percent to $5.34.

The three cryptocurrencies with at least $1-million market caps that have made the biggest gains over the past seven days are:

• BBSCoin: $1.5-million market cap, 812.5-percent gain.
• New Power Coin: $6.5-million market cap, 128.1-percent gain.
• AurumCoin: $4.2-million market cap, 118.2-percent gain.

The three cryptocurrencies hit hardest in the past seven days were:

• Namecoin: $8.8-million market cap, 65.3-percent decline.
• NewYorkCoin: $1.1-million market cap, 48.7-percent decline.
• Rise: $5.6-million market cap, 46.4-percent decline.

Related Links:

This Week In Cryptocurrency: SEC Cracks Down On ICOs, Crypto Safe Haven Trade Fails

Fidelity Launches Cryptocurrency Services Company For Institutional Investors