Key Takeaways
- • Zaheer Ebtikar is winding down Split Capital, his digital assets hedge fund launched in January 2024, to join stablecoin startup Plasma as chief strategy officer, signaling a strategic pivot away from traditional crypto hedge fund models.
- • Split Capital delivered strong absolute returns of approximately 100% in 2024 and 20% in 2025 despite managing eight-figure assets under management, yet Ebtikar determined the crypto hedge fund business model is no longer sustainable.
- • The fund returned capital to investors including Novi Loren and UTXO Management in late 2025 and will continue operating at minimal scale with only founder capital, reflecting broader industry consolidation.
- • The closure exemplifies a "mass extinction event" in crypto investing, with established players like Paradigm diversifying into AI and robotics, veteran investor Kyle Samani departing Multicoin, and institutional investors increasingly accessing crypto exposure through digital asset ETFs rather than hedge funds.
- • Ebtikar's move to Plasma positions stablecoins—cryptocurrencies pegged to real-world assets—as the sector's next growth frontier, with his C-suite responsibilities spanning product development, partnerships, investor relations, and promoting Plasma's blockchain infrastructure and forthcoming consumer application designed to compete with neobanks.
Summary
Zaheer Ebtikar, founder of the digital assets hedge fund Split Capital, is shuttering the firm after approximately two years of operation to assume the role of chief strategy officer at Plasma, a stablecoin-focused startup. The decision marks a significant strategic reorientation within the crypto investment landscape, reflecting fundamental structural shifts in how institutional capital accesses digital assets.
Split Capital, launched in January 2024 during a cryptocurrency market upswing, generated compelling returns that would ordinarily suggest operational viability. The fund delivered approximately 100% returns in 2024 and 20% in 2025 across its eight-figure asset base. However, Ebtikar concluded that despite these results, the crypto hedge fund business model has become untenable. "The entire hedge fund industry in crypto is kind of down and out," Ebtikar stated in comments to Fortune. In late 2025, the firm returned capital to its investor base, which included venture fund Novi Loren and digital asset firm UTXO Management, though Split Capital will maintain a smaller operational footprint utilizing only founder capital.
Ebtikar's transition to Plasma reflects a broader reconfiguration of the crypto investment sector. Established venture players including Paradigm are diversifying portfolios into AI and robotics, while veteran investor Kyle Samani announced in February his departure from Multicoin Capital to pursue opportunities beyond crypto. According to Rob Hadick, general partner at Dragonfly, the sector is undergoing a "mass extinction event." A primary structural headwind stems from the proliferation of digital asset ETFs, which provide institutional investors with direct cryptocurrency exposure without requiring hedge fund intermediation. Crypto asset prices have declined approximately 50% from their 2025 all-time highs, compounding competitive pressures.
At Plasma, Ebtikar will oversee product development, partnership strategy, investor relations, and commercialization of the company's blockchain infrastructure and forthcoming consumer application. The company positions itself in the stablecoin sector—cryptocurrencies pegged to real-world assets such as the U.S. dollar—which Ebtikar views as the next substantial growth opportunity. Plasma's planned consumer application is being engineered to compete directly with neobank platforms such as SoFi and Revolut, representing an expansion of stablecoin utility beyond pure financial instrumentation into mainstream consumer banking applications.
Split Capital, launched in January 2024 during a cryptocurrency market upswing, generated compelling returns that would ordinarily suggest operational viability. The fund delivered approximately 100% returns in 2024 and 20% in 2025 across its eight-figure asset base. However, Ebtikar concluded that despite these results, the crypto hedge fund business model has become untenable. "The entire hedge fund industry in crypto is kind of down and out," Ebtikar stated in comments to Fortune. In late 2025, the firm returned capital to its investor base, which included venture fund Novi Loren and digital asset firm UTXO Management, though Split Capital will maintain a smaller operational footprint utilizing only founder capital.
Ebtikar's transition to Plasma reflects a broader reconfiguration of the crypto investment sector. Established venture players including Paradigm are diversifying portfolios into AI and robotics, while veteran investor Kyle Samani announced in February his departure from Multicoin Capital to pursue opportunities beyond crypto. According to Rob Hadick, general partner at Dragonfly, the sector is undergoing a "mass extinction event." A primary structural headwind stems from the proliferation of digital asset ETFs, which provide institutional investors with direct cryptocurrency exposure without requiring hedge fund intermediation. Crypto asset prices have declined approximately 50% from their 2025 all-time highs, compounding competitive pressures.
At Plasma, Ebtikar will oversee product development, partnership strategy, investor relations, and commercialization of the company's blockchain infrastructure and forthcoming consumer application. The company positions itself in the stablecoin sector—cryptocurrencies pegged to real-world assets such as the U.S. dollar—which Ebtikar views as the next substantial growth opportunity. Plasma's planned consumer application is being engineered to compete directly with neobank platforms such as SoFi and Revolut, representing an expansion of stablecoin utility beyond pure financial instrumentation into mainstream consumer banking applications.
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