Zahir Ebtikar has closed Split Capital, the crypto hedge fund he founded in January 2024, and joined stablecoin blockchain startup Plasma as Chief Strategy Officer.
Split Capital Winds Down: A Structural Shift Behind 100% Returns
Ebtikar announced the move on X, calling it a strategic pivot after nearly two years of managing the fund. According to an exclusive report by Fortune, Split Capital delivered approximately 100% returns in 2024 and around 20% in 2025, with net returns exceeding 100% since inception. Nearly all investors exited profitably, and the fund's closure was not due to poor performance.
Ebtikar attributed the wind-down to broader structural changes in the crypto industry. In his post, he wrote: "The industry no longer rewards traders chasing momentum. The only real question is what the future looks like and where value lies." He argued that the hedge fund model is no longer viable in a maturing market.
Split Capital was launched during one of the most bearish periods in crypto, with a thesis that venture capital would flow into undervalued liquid tokens. The fund attracted limited partners including Novi Loren and UTXO Management, and managed assets in the eight-figure range. Its research arm, Split Research, operated concurrently.
However, the thesis did not pan out as expected. Over six years, more than $100 billion in venture capital poured into the space, yet the market returned to what Ebtikar called a "humbling baseline." He pointed to the launch of spot Bitcoin and Ethereum ETFs by BlackRock and Fidelity as a key factor that eroded the advantage of hedge funds. Institutional investors can now directly invest in crypto without going through fund managers.
Ebtikar also noted the widespread retreat of top crypto venture firms. Paradigm has expanded into AI and robotics; Multicoin's Kyle Samani has shifted focus; and Dragonfly's Rob Hadick described the current environment as a "mass extinction event" for crypto venture capital.
Split Capital's Wind-Down Process and the Allure of Plasma
Split Capital returned external capital to investors by end of 2025 and began liquidating as a full fund entity. It now operates on a limited scale using only proprietary capital. Since mid-2024, Ebtikar had been an early supporter and advisor to Plasma. After meeting with CEO Paul Faecks, he made a personal investment and helped with fundraising, hiring, and strategy. This Tuesday, he officially joined Plasma as a founding team member and Chief Strategy Officer.
Plasma is a Layer 1 blockchain built specifically for stablecoin settlement and distribution. It is Ethereum Virtual Machine (EVM) compatible, designed for high throughput, near-zero fees, and gas-free transfers of assets like USDT. The protocol uses a sharded architecture to resist spam transactions. Backers include Peter Thiel's Founders Fund, Tether CEO Paolo Ardoino, Bitfinex, and Framework Ventures—which led a round of approximately $20 to $24 million.
In his new role, Ebtikar will oversee senior partnerships, investor relations, and go-to-market strategies. His primary focus will be launching Plasma One, a stablecoin-powered digital banking app designed to compete with SoFi and Revolut in cross-border payments, savings, and financial services.
Ebtikar called Plasma "the best company I believe will emerge in crypto" and described joining the team as the culmination of his nine-year career. He previously traveled to Lugano to work with the team on Series A fundraising and market preparation.
Industry Trend: From Speculation to Infrastructure
This move reflects a broader shift in the crypto landscape—from speculative trading toward infrastructure built for real-world utility. Stablecoins have become the largest practical use case in the space, processing trillions of dollars in settlements annually. Plasma is positioning itself as the settlement layer for this activity.
Ebtikar thanked Split Capital's limited partners, team, and family in his post. No regulatory issues or investor disputes were mentioned. The departure underscores his vision for the next phase of crypto: a future led by builders, not traders.