Crypto hedge fund Split Capital, founded by Zahir Ebtikar in January 2024, has officially wound down after achieving net returns exceeding 100%. Ebtikar simultaneously announced his role as Chief Strategy Officer at stablecoin blockchain startup Plasma, where he will lead market strategy for the upcoming Plasma One digital banking app.
Split Capital: A Two-Year Run with a Triple-Digit Return, Then a Voluntary Shutdown
According to public announcements, Split Capital delivered roughly 100% returns in 2024 and approximately 20% in 2025, resulting in a cumulative net return of over 100% since inception. Nearly all investors exited with profits. The fund's closure was not due to poor performance but rather a fundamental structural shift in the crypto industry.
Ebtikar posted on X that the hedge fund model is no longer viable as the industry matures. “The industry no longer rewards traders chasing momentum. The only real question is: what will the future look like and where does value lie?” He attributed the wind-down to two key factors: the influx of over $100 billion in venture capital into crypto and the launch of spot bitcoin and ether ETFs by BlackRock and Fidelity. Institutional investors now have direct access to crypto without needing fund managers, eroding the hedge fund's comparative advantage.
Split Capital was launched during one of the worst crypto bear markets, with a thesis that venture capital would flow into undervalued liquid tokens. The fund attracted limited partners including Novi Loren and UTXO Management, managing an eight-figure sum. Its affiliated research arm, Split Research, also operated. However, the thesis did not play out as expected. Ebtikar noted that massive venture funding created numerous inefficient projects, and the market ultimately returned to what he called "a humbling baseline."
VC Exodus and Industry Shakeout: The End of Hedge Fund Dominance?
Ebtikar also highlighted the widespread retreat of top crypto venture capital firms. Paradigm has expanded into artificial intelligence and robotics; Multicoin's Kyle Samani has shifted focus; Dragonfly's Rob Hadick described the current environment as a "mass extinction event" for crypto VC. These changes further indicate that traditional hedge fund models reliant on momentum and information asymmetry are losing ground.
Split Capital began returning external capital to investors in late 2025 and is gradually winding down as a complete fund entity. Currently, it operates on a limited scale using only proprietary capital. No regulatory issues or investor disputes were involved in the process.
Plasma: A New Ambition in Stablecoin Settlement
Ebtikar had been an early supporter and advisor to Plasma since mid-2024. After meeting with CEO Paul Faecks, he made a personal investment and helped with fundraising, hiring, and strategy. This week, 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, compatible with the Ethereum Virtual Machine (EVM). Its design goals include high throughput, near-zero fees, and gas-free transfers for assets like USDT. The protocol uses a sharded architecture to resist spam transactions. Plasma's backers include Peter Thiel's Founders Fund, Tether CEO Paolo Ardoino, Bitfinex, and Framework Ventures, which led a $20–24 million funding round.
In his new role, Ebtikar will oversee senior partnerships, investor relations, and go-to-market strategy. His main focus will be launching Plasma One, described as a stablecoin-powered digital banking app targeting cross-border payments, savings, and financial services, competing with SoFi and Revolut. Ebtikar called Plasma "what I believe will be the best company in crypto" and said joining the team is the pinnacle of his nine-year career.
This shift reflects a broader trend in crypto: moving from speculative trading to infrastructure built around real-world utility. Stablecoins have become the largest use case in the space, handling trillions of dollars in settlement annually. Plasma aims to become the settlement layer for this activity. In his farewell post, Ebtikar thanked Split Capital's limited partners, team, and family, emphasizing his view that the next phase of crypto will be led by builders, not traders.