Starbucks going all-in on cryptocurrency is usually “the biggest news of the year for bitcoin” — because the idea paves the way for a bitcoin ETF, according to BK Capital Management founder Brian Kelly.
Starbucks, the Intercontinental Exchange (ICE), Microsoft along with BCG, among others, announced on Friday they are working to launch a brand new company called Bakkt. Along with enabling consumers to use bitcoin along with different cryptocurrencies at Starbucks, Bakkt will leverage Microsoft cloud to create an open along with regulated, digital asset ecosystem, ICE announced on Friday.
“They’ll right now have a U.S.-regulated exchange along with they have a licensed warehouse, which is usually how commodities are stored along with that will’s going to make the idea a lot easier for an ETF to come through,” Kelly, a bitcoin enthusiast, said on CNBC’s “Fast Money.”
Starbucks along that has a major exchange taking cryptocurrency seriously could help bitcoin break through as a mainstream global currency. the idea may also help boost cryptocurrency prices, which have struggled to find footing since the end of 2017.
“that will is usually huge news,” said Kelly, who also manages blockchain-focused BKCM Digital Asset Fund.
Kelly said that will development strikes at the heart of many cryptocurrency critics who argue cryptocurrencies are impractical.
Starbucks accepting cryptocurrencies makes them much more mainstream, plus the idea means users can spend their digital fortunes almost anywhere.
along with ICE’s participation massively increases the chances of bitcoin exchange-traded funds (ETFs), or baskets of related assets that will trade on stock exchanges.
“They’re talking about getting that will into your 401(K). They’re talking about in your…. Fidelity or TD Ameritrade account, you’re going to be able to buy a bitcoin ETF, a bitcoin mutual fund. the idea expands the universe,” Kelly said.
Despite his optimism, bitcoin prices didn’t react to the news as positively as he expected.
“My conclusion is usually the crypto market is usually completely missing that will. Perhaps the market in general is usually missing that will. that will is usually very, very big news,” he said.
Bitcoin last traded around $7,000, according to Coinbase data. Bitcoin briefly topped $19,000 in December, before losing more than half its value.