“Baakt” may set Bitcoin into EFT
Posted by BANKUS on September 09th 2018
Starbucks going into cryptocurrency is one of the main news of the year for bitcoin because it may open the way for a bitcoin Exchange Trade Funds (EFT), according to BK Capital Management founder Brian Kelly. Starbucks, the Intercontinental Exchange (ICE), Microsoft and BCG, among others well known and established companies, announced on Friday they are working to launch a new company called Bakkt. Apart from allowing consumers to use bitcoin and other cryptocurrencies at Starbucks, Bakkt will leverage Microsoft cloud to create an open and regulated, digital asset ecosystem, ICE announced on Friday.
"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," said Kelly, a bitcoin enthusiast, on CNBC's "Fast Money."
The possibility of Starbucks and a major exchange to take cryptocurrency seriously could set bitcoin to break through as a mainstream global currency. It could also help other cryptocurrency prices to increase, which has been down since the end of 2017.
"This is huge news," said Kelly, who also manages blockchain-focused BKCM Digital Asset Fund. This development strikes at the heart of many cryptocurrency sceptics who believe cryptocurrencies are not practical.
The idea of Starbucks accepting cryptocurrencies helps them to become mainstream and popular, and also it means users can spend their digital assets almost anywhere and ICE's participation increases the chances of bitcoin exchange-traded funds (ETFs), or baskets of related assets that trade on stock exchanges.
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. It expands the universe.