Boy bestfriend problems! Help please!?

Ok so I'm a girl I have a guy best friend named santiago. He is like the best person I have ever met in my life besides my family. But anyway here's the issue. I like him a lot and he told me to tell him and so I did. He treats me like as if I were his girlfriend. He tells me he loves me and he told me he wanted to loose his virginity with me we are always talking and hugging but when I told him I liked him he told me this " I love everything about you, but not to date you". I don't get it! Everyone at my school can see that he likes me and people keep asking if we are going out. We always hold hands and stuff I just don't get it. He's kind of shy I guess. He doesn't really talk to a lot of people but he has a lot of guy friends. Maybe he's shy? Idk please help me! Please! Tell me do u think he feels the same? What's the situation? What's wrong with him?