Crypto hedge fund Split Capital is winding down operations even after delivering more than 100% in net returns since its launch in January 2024. Its founder, Zaheer Ebtikar, has now joined stablecoin-focused blockchain startup Plasma as chief strategy officer, marking a notable shift from active fund management toward crypto infrastructure tied to real-world financial use cases.
According to the disclosed performance figures, Split Capital returned roughly 100% in 2024 and about 20% in 2025, pushing cumulative net returns above the 100% mark. Nearly all investors reportedly made money. That is a crucial detail: the fund is not being shut because of weak results, investor disputes, or regulatory trouble. Instead, Ebtikar framed the move as a response to a deeper structural transition in the crypto market.
Why a Profitable Fund Is Closing
Ebtikar argued that the crypto industry no longer rewards the same hedge fund playbook that once thrived on momentum, narrative rotation, and pricing inefficiencies in liquid tokens. In his view, the market has matured enough that the old assumptions behind many crypto hedge fund strategies no longer hold. The key question, he suggested, is not how to keep trading the same cycle, but where long-term value will be created next.
That argument reflects a broader evolution in digital assets. Over the last several years, more than $100 billion in venture capital flowed into the sector, yet token markets did not keep expanding in a straight line. Instead, valuations and liquidity conditions reverted toward what Ebtikar described as a more humbling baseline. In other words, capital poured in, but the payoff for many classic crypto investment structures became less obvious.
He also highlighted the growing impact of traditional finance players such as Blackrock and Fidelity, whose spot bitcoin and ether ETFs have given institutions a direct route into crypto exposure. For many allocators, that changes the role of specialist managers. If investors can now access major digital assets through regulated, familiar products, the intermediation edge of crypto hedge funds naturally weakens.
From Liquid Tokens to Infrastructure
Split Capital was launched during one of the market’s more difficult periods, when the original thesis was that venture capital would eventually rotate into undervalued liquid tokens. The fund attracted limited partners including Novi Loren and UTXO Management, and it operated with assets under management in the eight-figure range. Alongside the fund, Ebtikar also ran Split Research, giving the firm both an investment and analytical presence.
But even a well-timed launch and strong returns did not change the larger industry backdrop. Ebtikar pointed to signs that major crypto venture firms are reevaluating their strategies as well. He referenced examples such as Paradigm broadening into AI and robotics, and changing priorities across other large crypto-native investors. That context helped shape his conclusion that the next leg of crypto growth may not be driven primarily by token trading or fund structures, but by companies building financial rails with clear demand.
By the end of 2025, Split Capital had returned outside capital to investors and began winding down as a full fund entity. The firm is still operating on a limited basis using proprietary capital, but the external fund model is being phased out. This makes the transition less a sudden shutdown and more a controlled strategic exit from the traditional crypto hedge fund format.
Why Plasma Fits the Next Phase
Ebtikar had already been involved with Plasma well before formally joining the company. Since mid-2024, he had been an early supporter and adviser, and after meeting CEO Paul Faecks, he made a personal investment while helping with fundraising, hiring, and strategy. His official move into the founding team now formalizes a relationship that had been developing for some time.
Plasma is building a Layer 1 blockchain specifically designed for stablecoin settlement and distribution. The network is EVM-compatible and aims to offer high throughput, near-zero fees, and gasless transfers for assets such as USDT. It also uses a block-based architecture intended to resist spam transactions. The company’s backers include Founders Fund, Tether CEO Paolo Ardoino, Bitfinex, and Framework Ventures, which previously led a funding round reportedly worth around $20 million to $24 million.
As chief strategy officer, Ebtikar will oversee senior partnerships, investor relations, and go-to-market execution. One of his most important mandates will be supporting the launch of Plasma One, a stablecoin-powered digital banking application expected in 2026. The product is positioned to compete with firms such as SoFi and Revolut across areas including cross-border payments, savings, and broader financial services.
The Bigger Market Message
The move from running a profitable hedge fund to joining a stablecoin infrastructure company says something important about where parts of the crypto industry believe value is heading. Stablecoins have become one of the sector’s clearest real-world applications, processing trillions in settlement volume annually. That makes settlement rails, distribution systems, and user-facing financial products increasingly important compared with purely speculative trading strategies.
Ebtikar’s transition also highlights a changing hierarchy in crypto. During earlier cycles, traders, market makers, and momentum-driven funds often sat at the center of attention. Now, builders focused on payments, banking interfaces, and onchain financial rails may be better positioned to capture durable value. In that sense, the wind-down of Split Capital is not simply the story of one fund closing. It is a case study in how experienced market participants are repositioning around infrastructure and utility.
Notably, there was no indication in the report of regulatory issues, investor conflict, or forced liquidation. Instead, Ebtikar used the announcement to thank Split Capital’s limited partners, team members, and family, while signaling confidence in crypto’s next phase. His message was clear: the industry’s center of gravity is shifting, and in that next chapter, builders may matter more than traders.