Starbucks commitment to cryptocurrency is “the most important news of the year for bitcoin”, because it paves the way for a bitcoin ETF, according to the founder of BK Capital Management, Brian Kelly.
Starbucks, Intercontinental Exchange (ICE), Microsoft and BCG, among others, announced on Friday that they are working to launch a new company called Bakkt. In addition, Bitcoin and other cryptocurrencies at Starbucks, Bakkt will leverage Microsoft’s cloud to create an ecosystem of open and regulated digital assets, ICE on Friday.
“Now they have a regulated exchange for the US and they have a licensed warehouse, which is how commodities are stored and that is much easier for an ETF,” said Kelly, a bitcoin enthusiast at CNBC. . “Easy money”.
Starbucks and an important exchange taking the cryptocurrency seriously help a Bitcoin to break through as a dominant global currency. It can also help boost the prices of cryptocurrencies, which have struggled to find the balance since the end of 2017.
“This is great news,” said Kelly, who also managed BKCM Digital Asset Fund focused on blockchain.
Kelly said that this development hit the hearts of many cryptocurrency critics who argue that cryptocurrencies are not practical.
Starbucks accepts cryptocurrencies that make them much more conventional, plus it means that users can spend their digital fortunes almost anywhere.
And ICE’s participation greatly increases the possibilities of bitcoin exchange-traded funds (ETFs), or baskets of related assets that are traded on stock exchanges.
“They’re talking about including this in their 401 (K), they’re talking in their … Fidelity account or TD Ameritrade, they can buy a bitcoin ETF, a bitcoin investment fund, the universe expands,” Kelly said.
Despite its optimism, bitcoin prices did not react to the news as positively as expected.
“My conclusion is that the encryption market is completely absent, maybe the market in general is missing this, this is very big news,” he said.
Bitcoin negotiated for the last time around $ 7,000, according to data from Coinbase. Bitcoin briefly exceeded $ 19,000 in December, before losing more than half of its value.