Key Takeaways:
- Zaheer Ebtikar shut down Split Capital after delivering over 100% net returns since its January 2024 launch.
- Ebtikar cited $100 billion in venture funding and spot ETFs from BlackRock and Fidelity as reasons the hedge fund model is broken.
- As Plasma’s new CSO, Ebtikar will lead go-to-market strategy for the Plasma One stablecoin neobank app launching in 2026.
Crypto Hedge Fund Era Ending? Split Capital Closes as Founder Pivots to Plasma Stablecoin L1
Ebtikar made the announcement on X, where he described the decision as a strategic pivot after nearly two years running the fund. Fortune was the first to report on the news on Tuesday with an exclusive. Split Capital delivered roughly 100% returns in 2024 and approximately 20% in 2025, with net returns exceeding 100% since inception. Virtually every investor turned a profit. The fund is not closing because of poor performance.
Ebtikar framed the wind-down as a response to structural shifts in the broader crypto industry. He argued the hedge fund model no longer makes sense as the sector matures. “The industry no longer rewards traders chasing momentum,” he wrote. “The only real question is: what does the future look like and where is the value?”
Ebtikar launched Split Capital during one of crypto’s slowest periods, operating on the thesis that venture capital would flow toward undervalued liquid tokens. The fund attracted limited partners including Novi Loren and UTXO Management and held eight figures in assets under management. A related research arm, Split Research, ran alongside it.
The thesis did not play out as expected. More than $100 billion in venture funding entered the space over six years, and the market returned to what Ebtikar called a “humbling baseline.” He pointed to spot bitcoin and ethereum ETFs offered by Blackrock and Fidelity as one reason the hedge fund model lost its edge. Institutional investors can now access crypto without a fund manager.
He also cited a broader retreat among crypto’s top venture firms. Paradigm has expanded into artificial intelligence (AI) and robotics. Multicoin’s Kyle Samani has shifted focus. Dragonfly’s Rob Hadick described the current moment as a “mass extinction event” for crypto venture capital.
Split Capital returned outside capital to investors in late 2025 and began winding down as a full fund vehicle. It continues in a limited capacity using only proprietary capital. Ebtikar had been an early backer and advisor at Plasma since mid-2024. He invested personally and helped with fundraising, hiring, and strategy after meeting CEO Paul Faecks. He joined formally as a founding team member and Chief Strategy Officer on Tuesday.
Plasma is a layer one (L1) blockchain built for stablecoin settlement and distribution. It is EVM-compatible, designed for high throughput, near-zero fees, and gasless transfers for assets like USDT. The protocol uses a split-block architecture to resist spam. Backers include Peter Thiel’s Founders Fund, Tether CEO Paolo Ardoino, Bitfinex, and Framework Ventures, which led a round of approximately $20 million to $24 million.
In his new role, Ebtikar will lead senior partnerships, investor relations, and product go-to-market strategy. His primary focus will be the launch of Plasma One, a consumer app the company describes as a stablecoin-powered neobank aimed at competing with 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 joining the team as the culmination of nine years in the industry. He spent time in Lugano with the team working through the Series A and go-to-market preparation.
The move reflects a broader shift inside crypto from speculative trading toward infrastructure built around real-world utility. Stablecoins have become the sector’s largest practical use case, processing trillions in settlement volume annually. Plasma is positioning itself as the settlement layer for that activity.
Ebtikar acknowledged his Split Capital limited partners, team, and family in his post. No regulatory issues or investor disputes were cited. The closure reflects his view that the next phase of crypto will be defined by builders, not traders.
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