Key Takeaways
- • Zaheer Ebtikar has wound down Split Capital, a crypto hedge fund launched in January 2024, after delivering cumulative net returns exceeding 100% (approximately 100% in 2024 and 20% in 2025), with virtually all investors profitable.
- • Ebtikar cited structural industry shifts as the rationale for closure, specifically citing $100 billion in venture capital funding and spot ETF launches from BlackRock and Fidelity as evidence that the hedge fund model no longer provides competitive advantage in crypto markets.
- • Split Capital operated on a thesis that venture capital would flow toward undervalued liquid tokens during a period of crypto sector slowdown; the fund attracted eight figures in AUM from limited partners including Novi Loren and UTXO Management.
- • Ebtikar is transitioning to Plasma, a stablecoin blockchain startup, as Chief Strategy Officer, where he will lead go-to-market strategy for the Plasma One stablecoin neobank application scheduled to launch in 2026.
- • The closure reflects a broader view that institutional capital influx and regulatory clarity have reduced informational asymmetries and momentum-trading opportunities that previously characterized crypto hedge fund strategies.
Summary
Zaheer Ebtikar has announced the permanent closure of Split Capital, the cryptocurrency hedge fund he founded in January 2024, following a highly profitable two-year operating period. Despite delivering cumulative net returns exceeding 100%—with approximately 100% returns in 2024 and roughly 20% in 2025—Ebtikar determined that continued operation no longer aligned with evolving market structure. The fund's closure was not precipitated by underperformance; virtually every investor generated positive returns.
Ebtikar framed the wind-down as a strategic response to fundamental shifts in cryptocurrency market maturation and capital allocation. He cited $100 billion in venture funding flowing into the sector and institutional spot Bitcoin and Ethereum ETF approvals from BlackRock and Fidelity as catalysts that have rendered the traditional hedge fund model obsolete. In statements on X, Ebtikar argued that "the industry no longer rewards traders chasing momentum" and questioned whether hedge funds could add value when structural market conditions had changed. Split Capital's initial thesis—that venture capital would flow disproportionately toward undervalued liquid tokens during a period of crypto sector dormancy—did not materialize as anticipated, though the fund remained profitable regardless.
Split Capital operated with eight figures in assets under management, supported by limited partners including Novi Loren and UTXO Management, and maintained a related research arm called Split Research. The fund launched during one of cryptocurrency's slowest trading periods, positioning itself to capitalize on anticipated volatility and mispricings.
Rather than remaining in crypto trading, Ebtikar is transitioning to Plasma, a stablecoin blockchain startup, where he assumes the role of Chief Strategy Officer. In this capacity, he will oversee go-to-market strategy for Plasma One, a stablecoin-focused neobank application expected to launch in 2026. The move reflects a broader industry pivot from speculative trading vehicles toward infrastructure and application-layer opportunities in blockchain technology.
Ebtikar framed the wind-down as a strategic response to fundamental shifts in cryptocurrency market maturation and capital allocation. He cited $100 billion in venture funding flowing into the sector and institutional spot Bitcoin and Ethereum ETF approvals from BlackRock and Fidelity as catalysts that have rendered the traditional hedge fund model obsolete. In statements on X, Ebtikar argued that "the industry no longer rewards traders chasing momentum" and questioned whether hedge funds could add value when structural market conditions had changed. Split Capital's initial thesis—that venture capital would flow disproportionately toward undervalued liquid tokens during a period of crypto sector dormancy—did not materialize as anticipated, though the fund remained profitable regardless.
Split Capital operated with eight figures in assets under management, supported by limited partners including Novi Loren and UTXO Management, and maintained a related research arm called Split Research. The fund launched during one of cryptocurrency's slowest trading periods, positioning itself to capitalize on anticipated volatility and mispricings.
Rather than remaining in crypto trading, Ebtikar is transitioning to Plasma, a stablecoin blockchain startup, where he assumes the role of Chief Strategy Officer. In this capacity, he will oversee go-to-market strategy for Plasma One, a stablecoin-focused neobank application expected to launch in 2026. The move reflects a broader industry pivot from speculative trading vehicles toward infrastructure and application-layer opportunities in blockchain technology.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.