Bitcoin could come to your retirement account : Investor Brian Kelly

Starbucks' jump into cryptocurrency is "the biggest news of the year for bitcoin" as a result of it paves the way for a bitcoin ETF, according to Bk Capital Management founder Brian Kelly.

Starbucks, the intercontinental Exchange, Microsoft and BCG, among others, declared on Friday they're working to launch a new company known as Bakkt. Along with enabling  consumers to use bitcoin and alternative cryptocurrencies at Starbucks, Bakkt will leverage Microsoft's cloud to make an open and controlled, digital asset ecosystem, ICE said.

"They'll currently have a U.S.-regulated exchange, and they have a licensed warehouse, which is how commodities are keep, and that's going to create it plenty easier for an ETF to come through," Kelly, a bitcoin enthusiast, said on CNBC's "Fast money."

Starbucks and a major exchange taking cryptocurrency seriously might help bitcoin break through as a mainstream international currency. It may also help boost cryptocurrency prices, that have struggled to find footing since the end of 2017.

"This is huge news," said Kelly, who also manages blockchain-focused BKCM Digital asset Fund.

Kelly said this development strikes at the center of critics who argue that cryptocurrencies are impractical.

Starbucks' decision to accept cryptocurrencies makes them far more mainstream, plus it means users can spend their digital fortunes almost anywhere.

And ICE's participation massively will increase 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 are talking about in your ... Fidelity or TD Ameritrade account, you're going to be able to purchase a bitcoin ETF, a bitcoin mutual fund. It expands the universe," Kelly said.

Bitcoin prices did not react to the news as positively as he expected. "My conclusion is the crypto market is totally missing this. Maybe the market generally is missing this. This is very, very big news," he said.

Bitcoin was trading around $7,000 on Monday, in keeping with Coinbase data. Bitcoin briefly topped  $19,000 in December, before losing more than half its value.