Two DACs for one system?

I looked at the Bluesound Webpage. It looks like it connects via Ethernet and then outputs to either RCA or Toslink.
So, Yes, I think you need a DAC for your cd player, if it is only a CD transport and not a CD player. The former only plays the CD, the latter plays and deciphers the signal to the preamp.

Should you need a DAC, I would suggest a Schiit Modi or Bifrost Multibit. 
Both are quite inexpensive and will provide you with excellent sound.
HTH
Bob 

What is your cd player? I think perhaps what folks are telling you is your cd player, and your Bluesound Node might both benefit from a better external Dac. You could then plug both your sources into that Dac and reap the benefits either streaming or spinning CDs. That's how I interpret what you are saying and asking.

Marantz cd 5005