Investing.com - Cryptocurrencies were in the red on Wednesday amid reports that financial giant Goldman Sachs (NYSE:GS) is retreating on its plan for a Bitcoin trading desk.
The financial institution will instead focus on other projects, such as holding digital coins on behalf of large-fund clients, but could look into a trading desk in the future, Business Insider reported.
Goldman Sachs already participates in Bitcoin futures and contracts for difference, allowing investors to bet on the price of Bitcoin without actually owning it.
As alternative currencies have risen in popularity, many Wall Street companies are looking for ways to get into the burgeoning field. But with Bitcoin down almost 70% since its peak of nearly $20,000 in December, that interest is dying down.
Bitcoin (BitfinexUSD) fell 5.05% to $7,019.30 on the Bitfinex exchange, as of 8:23 AM ET (12:23 GMT).
Cryptocurrencies overall inched up, with the coin market cap of total market capitalization at $239 billion at the time of writing, compared to $235 billion on Monday.
Ethereum, the second-biggest alternative currency by market cap, slumped 11.46% to $259.67, while XRP, the third-largest virtual currency, decreased 11.16% to $0.30437 and Litecoin was at $62.383, down 9.66%.
In other news, the Iranian government has agreed to recognize the mining of digital coins as an industry. The Central Bank of Iran is expected to draft a policy framework for cryptocurrencies in the next 18 days. While the final policy has not yet been declared, it is hoped the use of alternative coins will help smooth trade between Tehran and its partners in the wake of renewed U.S. sanctions.
The White House imposed sanctions aimed at Iran’s oil production and are set to take effect in November. Iran is the third-largest oil producer within the Organization of the Petroleum Exporting Countries (OPEC).