How does a beginner DAC (fiio K3) compare to an AVR (denon X3400H) ?

Audiolab 6000A Amplifier

taeca

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I have a pair of powered monitors (JBL LSR 305P) that I use with a small USB DAC (fiio K3). I got a Denon AVR X3400H from a friend (they are going to be out of town for a while). I am contemplating buying either 1) A pair of budget passive speakers to use with AVR or 2. TRS to RCA cables for connecting LSR 305P to the AVR pre-amp.

My (noob) question is if it is worth doing, i.e. if it would make a significant difference in audio quality if I do either of those, compared to the fiio K3 set up.
(Source is going to be mostly Spotify premium, not a lot of movies so multichannel home theatre set up is out of the picture )
 
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