Brian Kelly on Starbucks’ Bakkt News: Bitcoin in Retirement Accounts Biggest News of Year
For Brian Kelly, an important investor and founder of BK Capital Management, the decision of Starbucks, NYSE, ICE and Microsoft to go all-in on cryptocurrencies is ‘the biggest news of the year for bitcoin.’ During a conversation with CNBC, Mr. Kelly was very positive about Bitcoin (BTC) and the possibility to have a Bitcoin ETF.
Back on Friday, Starbucks, the Intercontinental Exchange (ICE), Microsoft and BCG, announced that they were working to launch a company called Bakkt. The main intention is to allow customers at Starbucks to pay for their orders using Bitcoin and other virtual currencies.
“They’ll now have a U.S. regulated exchange and they have a licensed warehouse, which is how commodities are stored and that’s going to make it a lot easier for an ETF to come through.”
In the past, when Bitcoin was near its all time high, the community was waiting for Starbucks to start accepting virtual currencies. Now that Starbucks and an important exchange are seriously thinking about this idea, it could be the beginning of massive adoption all over the world as Fundstrat's Tom Lee certainty agrees.
Of course, setting everything up can take a very long period of time but the fact that such companies are working on this is very bullish for the whole cryptocurrency market. ‘This is huge news,’ Kelly said.
This information goes against the thoughts of many critics of virtual currencies that believe that they are impractical for daily purchases.
“They’re talking about getting this 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,” Kelly said. “It expands the universe.”
Until now, the markets did not react very positively on the news. Indeed, virtual currencies are hardly falling in price in the last 24 hours.
Back in June, Mr. Kelly said that Bitcoin was going to recover to levels around $10,000 dollars and that there was an imminent bottom in the market.
At the moment of writing Bitcoin is being traded close to $7,000 dollars and has a market capitalization of $121 billion dollars. In the last 24 hours, Bitcoin lost 5% of its value despite Kelly considering this the biggest news of bitcoin's bear market year to date.