Zaheer Ebtikar has formally closed Split Capital, the crypto hedge fund he launched in January 2024, and joined stablecoin-focused blockchain startup Plasma as Chief Strategy Officer (CSO). The announcement was made on X, with Fortune first reporting the exclusive. Despite delivering over 100% net returns since inception — roughly 100% in 2024 and 20% in 2025 — Ebtikar decided to wind down the fund, with virtually every investor turning a profit. Performance was not the issue.
Why Close? Ebtikar Says Hedge Fund Model Is Broken
Ebtikar framed the decision as a response to structural shifts in the crypto industry. He argued that momentum-chasing traders are no longer rewarded as the sector matures. Over $100 billion in venture funding has entered crypto in six years, and the launch of spot bitcoin and ethereum ETFs from BlackRock and Fidelity has given institutional investors direct access without fund managers. He believes the hedge fund model has lost its edge. Top crypto VCs have also pivoted: Paradigm expanded into AI and robotics, Multicoin's Kyle Samani shifted focus, and Dragonfly's Rob Hadick described a "mass extinction event" for crypto venture capital. Split Capital returned external capital to investors in late 2025 and now operates only on a proprietary basis.
New Chapter: Joining Plasma to Drive Stablecoin Adoption
Ebtikar had been an early backer and advisor at Plasma since mid-2024, assisting with fundraising, hiring, and strategy. Plasma is a layer-1 blockchain purpose-built for stablecoin settlement and distribution, EVM-compatible, offering high throughput, near-zero fees, and gasless transfers for assets like USDT. It uses a split-block architecture to resist spam. Backers include Founders Fund (Peter Thiel), Tether CEO Paolo Ardoino, Bitfinex, and Framework Ventures, which led a round of approximately $20 million to $24 million. As CSO, Ebtikar will lead senior partnerships, investor relations, and go-to-market strategy, focusing on the launch of Plasma One, a consumer stablecoin-powered neobank targeting SoFi and Revolut for global payments, savings, and financial access. Ebtikar called Plasma "what I believe will be the best company in crypto" and described the move as the culmination of nine years in the industry.
Industry Signal: From Speculation to Infrastructure
Ebtikar's pivot reflects a broader shift from speculative trading to real-world utility infrastructure in crypto. Stablecoins have emerged as the sector's largest practical use case, settling trillions of dollars annually. Plasma is positioning itself as the settlement layer for that activity. Ebtikar thanked his limited partners, team, and family, noting no regulatory issues or investor disputes. He believes the next phase of crypto will be defined by builders, not traders.