Key points to remember:
- Zaheer Ebtikar closed Split Capital after generating a net return of over 100% since its launch in January 2024.
- 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 the commercialization strategy for Plasma One. stable coin Launch of the neobank application in 2026.
Cryptocurrency Is the era of hedge funds ending? Split Capital closes as founder turns to plasma Stablecoins L1
Ebtikar did the announcement on X, where he described the decision as a strategic pivot after nearly two years of managing the fund. Fortune was the first to report in the news Tuesday with an exclusive. Split Capital has generated returns of approximately 100% in 2024 and approximatelycurrently 20% in 2025, with net returns above 100% since inception. Virtually all investors made profits. The fund does not close due to poor performance.
Ebtikar presented the liquidation as a response to structural changes across the country. crypto industry. He argued that the hedge fund model no longer made sense as the industry matured. “The industry no longer rewards traders for chasing momentum,” he wrote. “The only real question is: what does the future hold?”ok and where is the value?
Ebtikar launched Split Capital during one of cryptothe slowest periods of the economy, based on the thesis that venture capital would flock to undervalued liquidity. tokens. The fund has attracted limited partners, including Novi Loren and UTXO Management and held eight-figure assets under management. A related research arm, Split Research, operated alongside it.
The thesis did not proceed as expected. More than $100 billion in venture financing has entered the sector in six years, and the market has returned to what Ebtikar called a “humbling baseline.” He pointed to the place bitcoin and Ethereum ETFs offered by Blackrock and Loyalty This is one of the reasons why the hedge fund model has lost its edge. Institutional investors can now access crypto without a fund manager.
He also cited a broader decline among cryptothe best venture capital firms in . The paradigm has extended to artificial intelligence (AI) and robotics. Kyle Samani of Multicoin has changed direction. 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 transforming into a full fund vehicle. It continues in a limited capacity using only equity. Ebtikar had been one of the first donors and advisor of Plasma since mid-2024. He invested personally and helped with fundraising, recruiting and strategy after meeting with CEO Paul Faecks. He officially joined the team on Tuesday as a founding member and chief strategy officer.
Plasma is layer one (L1) blockchain built for stable coin settlement and distribution. It is EVM enabled, designed for high throughput, near-zero fees, and gas-free 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 roleEbtikar will lead senior partnerships, investor relations and product go-to-market strategy. Its main focus will be the launch of Plasma One, a consumer application that the company describes as a neobank powered by stablecoins and intended to compete SoFi And Revolution for global payments, savings and financial access.
Ebtikar called Plasma “what I think will be the best company in the world.” crypto” and described joining the team as the culmination of nine years in the industry. He spent time in Lugano with the team working on Series A and preparing to go to market.
The move reflects a broader shift within crypto from speculative trading to infrastructure built around real utility. Stablecoins have become the industry’s largest practical use case, processing billions of dollars in settlements volume annually. The plasma is positioned as a sedimentation layer for this activity.
Ebtikar thanked his sponsors and his team at Split Capitaland his family at his post. No regulatory issues or investor disputes were mentioned. The closing reflects his view that the next phase of crypto will be defined by manufacturers and not by traders.
