Split Capital shuts down, and its founder pivots to a stablecoin startup Plasma

Crypto hedge fund Split Capital founder Zaheer Ebtikar announced that he will gradually wind down the digital asset hedge fund he launched in January 2024, and join stablecoin startup Plasma as Chief Strategy Officer (CSO). The decision to shut down was not driven by poor performance, but by his fundamental assessment of the business model of crypto hedge funds.

Active wind-down with high returns: Split Capital’s exit logic

Split Capital returned investors’ principal by the end of 2025. Investors include venture capital fund Novi Loren and digital asset firm UTXO Management, with assets under management reaching “eight figures” in U.S. dollars. Ebtikar declined to disclose the exact figures, but said the fund would continue operating in a smaller scale, using only its own capital and no longer accepting external investment.

“Overall, the crypto hedge fund industry has seen some decline,” he said in an exclusive interview with Fortune magazine.

Systemic decline of crypto hedge funds: three major structural pressures

Ebtikar’s exit is a reflection of a broader structural shift taking place across the entire crypto investment industry, with multiple pressures accumulating at the same time:

Three major structural decline factors

Crypto ETFs split institutional capital: In the 2010s, institutions refused direct exposure to crypto assets, and hedge funds filled that gap. Today, spot Bitcoin ETFs from BlackRock and Fidelity allow institutions to allocate digital assets easily, dramatically reducing the scarcity value of traditional crypto hedge funds

Mainstream crypto asset pullbacks: Since their 2025 all-time highs, Bitcoin and Ethereum have fallen nearly 50%, shrinking the room for hedge funds to generate excess returns through hedging

A mass exodus among top investors: Renowned venture fund Paradigm has expanded its investments into AI and robotics; veteran investor Kyle Samani announced his departure from Multicoin in February this year; and Dragonfly general partner Rob Hadick said plainly that crypto venture capital is experiencing “mass extinction”

Ebtikar joins Plasma: strategic expansion for a stablecoin platform

Stablecoins are one of the fastest-growing segments in the crypto industry today. Their feature is that they are pegged to real-world assets such as the U.S. dollar. Supporters believe this can speed up transfers and reduce transaction costs. Long before joining Plasma, Ebtikar had already participated in core decision-making in the capacity of an early investor and advisor. After deep discussions with Plasma CEO Paul Felix, he solidified his long-term view of the stablecoin space.

“I’ve been helping—long term, I’ve been involved in major decisions in an advisory capacity,” he said. Now, he has formally been promoted to Chief Strategy Officer, helping Plasma move forward with its upcoming consumer application—a stablecoin-based financial platform directly targeting new banking players such as SoFi and Revolut.

He positions part of his role as a “public evangelist,” spreading Plasma’s blockchain philosophy to the outside world; at the same time, he is responsible for senior partnerships, investor relations, and directly participates in the product development cycle.

“This is my summary from nine years working in the crypto space—seeing which methods work and which don’t—then realizing that’s what people truly want,” Ebtikar said.

Frequently asked questions

Why did Split Capital choose to wind down even when the return rate reached 100%?

Ebtikar said the decision to wind down was not due to performance issues, but based on his assessment of the business model of the entire crypto hedge fund industry. The success of spot Bitcoin ETFs enables institutional investors to allocate crypto assets directly through institutions such as BlackRock, weakening the value of traditional hedge funds.

What kind of company is Plasma?

Plasma is a stablecoin startup developing consumer financial applications based on stablecoins, positioning itself directly against new banking players such as SoFi and Revolut. Stablecoins are cryptocurrencies pegged to real-world assets such as the U.S. dollar, and are believed to reduce transfer costs and improve trading efficiency.

Is Split Capital completely shutting down?

Not entirely. The external investors’ funds have all been returned by the end of 2025, but the fund will continue to exist in a smaller scale, operating using only its own capital (proprietary), and no longer raising money from outside.