Split Capital, the crypto hedge fund founded by Zaheer Ebtikar in January 2024, is shutting down even after delivering more than 100% in net returns since inception. The move was framed not as a response to poor performance, but as a strategic decision tied to broader changes across the digital asset industry. Ebtikar has now officially joined stablecoin blockchain startup Plasma as chief strategy officer.
Strong returns, but a changing market
According to the report, Split Capital returned roughly 100% in 2024 and about 20% in 2025, pushing net performance since launch above 100%. Ebtikar said nearly every investor made money, underscoring that the fund was not closing because of losses or operational distress.
Instead, he argued that the crypto market has matured to the point where the classic hedge fund model no longer offers the same value proposition. In his view, the industry is no longer rewarding traders who simply chase momentum, and the key question has shifted toward where long-term value will ultimately accrue.
ETFs and institutional access changed the equation
Split Capital was launched during a quieter period for crypto, built on the thesis that venture capital would flow into undervalued liquid tokens. The fund attracted limited partners including Novi Loren and UTXO Management, managed assets in the eight-figure range, and also ran a research arm called Split Research.
Ebtikar said that thesis did not play out as expected. He pointed to more than $100 billion in venture capital entering the sector over a six-year period, while spot bitcoin and ether ETFs from BlackRock and Fidelity made it easier for institutions to gain crypto exposure directly. As a result, hedge funds lost part of their traditional edge as gatekeepers and specialized allocators.
He also noted that leading crypto venture firms have been reassessing their focus. Paradigm has expanded into AI and robotics, while other investors have shifted priorities as well. Dragonfly partner Rob Hadick described the current environment as a kind of “mass extinction” for crypto venture capital.
From hedge funds to stablecoin infrastructure
Split Capital returned outside capital to investors at the end of 2025 and began winding down as a full fund vehicle, though it continues to operate in a limited form using only proprietary capital. Ebtikar, meanwhile, has formalized a relationship with Plasma after supporting the project since mid-2024 as an early backer, advisor, and personal investor.
Plasma is a Layer 1 blockchain designed for stablecoin settlement and distribution. It is EVM-compatible and built around high throughput, near-zero fees, and gasless transfers for assets such as USDT. The protocol uses a split-block architecture to resist spam. Backers named in the report include Founders Fund, Tether CEO Paolo Ardoino, Bitfinex, and Framework Ventures, with funding reported at roughly $20 million to $24 million.
In his new role, Ebtikar will oversee senior partnerships, investor relations, and go-to-market strategy, with a major focus on Plasma One, a consumer app expected in 2026. The product is described as a stablecoin-based neobank aiming to compete with SoFi and Revolut in global payments, savings, and access to financial services.
The transition reflects a wider shift in crypto: away from pure speculation and toward infrastructure built around practical utility. For Ebtikar, the next phase of the industry will be led less by traders and more by builders, with stablecoins emerging as one of the clearest real-world use cases.