Why is Split Capital shutting down despite strong returns?

Split Capital is closing even after delivering over 100% returns and remaining profitable in 2024 and 2025. Founder Zaheer Ebtikar said the hedge fund model no longer fits the current crypto market structure.

Who is Zaheer Ebtikar and what is he doing next?

Zaheer Ebtikar is the founder of Split Capital, a crypto hedge fund. He is joining stablecoin startup Plasma as chief strategy officer to focus on long-term infrastructure.

Why does Zaheer Ebtikar believe crypto hedge funds are no longer effective?

Ebtikar argued that crypto markets have moved beyond short-term, momentum-driven trading strategies. He believes the industry now rewards long-term value creation rather than active trading.

What is Plasma and why is it attracting attention?

Plasma is a stablecoin infrastructure startup focused on global payments and financial access. It has raised $24 million from major investors including Peter Thiel, Bitfinex and Tether’s CEO.

What will Ebtikar do at Plasma?

As chief strategy officer, Ebtikar will lead partnerships, growth and go-to-market strategy. He will also engage with investors and policymakers as Plasma expands its ecosystem.

What does this move signal about the crypto industry?

It suggests a shift from speculative trading toward building real-world financial infrastructure. Stablecoins and payments are emerging as key areas of focus.

Is this trend bullish or bearish for crypto hedge funds?

This is bearish for crypto hedge funds, as it highlights structural challenges in their business model. More funds could struggle or shut down if market conditions remain unfavourable.

Is this development bullish for stablecoins?

Potentially yes, as capital and talent are moving into stablecoin infrastructure. This could accelerate adoption in payments and institutional use cases.

Split Capital shuts as founder joins Plasma

Written by Liezl GambePublished Apr. 8 2026

Split Capital is winding down operations as founder Zaheer Ebtikar exits the crypto hedge fund to join stablecoin startup Plasma as chief strategy officer.

Ebtikar said the fund delivered over 100% returns and remained profitable in 2024 and 2025, but argued the hedge fund model no longer fits the evolving crypto market.

“The hedge fund model did not make sense for crypto, in perpetuity,”

Ebtikar said, citing a broader shift away from short-term trading strategies.

He said the industry has matured beyond momentum-driven trading, with investors now focused on long-term value and infrastructure development.

Ebtikar’s move comes as crypto hedge funds face ongoing pressure following the 2022 downturn and changing market dynamics.

Plasma, backed by investors including Peter Thiel and Tether CEO Paolo Ardoino, is building stablecoin infrastructure aimed at global payments and financial access.

Ebtikar said the transition reflects a belief that crypto is entering a new phase centred on building scalable financial systems rather than speculative trading.