Crypto hedge fund Split Capital shuts down as Ebtikar takes CSO role at Plasma
Following impressive performance numbers, Zaheer Ebtikar has decided to shutter his cryptocurrency hedge fund Split Capital to become chief strategy officer at stablecoin infrastructure company Plasma, pointing to fundamental market transformation.
The digital asset hedge fund Split Capital, established by investor Zaheer Ebtikar, is ceasing operations as its founder transitions to Peter Thiel-supported stablecoin infrastructure venture Plasma.
In a Tuesday X post, Ebtikar shared the announcement, revealing that Split Capital achieved profitability in both 2024 and 2025, generating returns exceeding 100%.
"We were a top performing fund by every mark," Ebtikar stated, explaining that his choice to close the fund stemmed from his assessment that the cryptocurrency market has evolved beyond the strategies hedge funds are structured to exploit.
"The hedge fund model did not make sense for crypto, in perpetuity," he noted.
The move by Ebtikar occurs against a backdrop of ongoing challenges for cryptocurrency hedge funds, which have reportedly encountered more difficult market environments following the 2022 market collapse.
Crypto industry no longer rewards traders chasing momentum, Ebtikar argues
Ebtikar characterized his initial years in the cryptocurrency space as "PvP button-clicking," a period when traders battled in rapidly shifting markets propelled by momentum and narratives. However, after close to a decade, he indicated those dynamics have evolved.
"The industry no longer rewards traders chasing momentum, it has matured into a space where the only real question is 'What does the future look like and where is the value?'" he stated.
According to Ebtikar, many investors, critics included, were correct in questioning the long-term viability of funds like Split Capital within a market undergoing rapid transformation.
"As time went on, our conviction narrowed around a small number of founders and verticals I genuinely believed in," Ebtikar explained.
Betting on Plasma's stablecoin vision
Ebtikar indicated his confidence in Plasma strengthened following extensive collaboration with the company's founding team during 2024 and 2025.
The company Plasma specializes in developing infrastructure for stablecoin settlement and worldwide financial accessibility. In February of last year, the platform secured $24 million in funding from backers including Framework Ventures, Bitfinex, Peter Thiel and Tether CEO Paolo Ardoino.
In his role as chief strategy officer at Plasma, Ebtikar will oversee partnerships, growth initiatives and go-to-market strategies, while also interfacing with investors and policymakers in preparation for the Plasma One launch and continued ecosystem development.
He characterized the transition as reflecting a broader conviction that cryptocurrency is moving into a new era characterized less by speculative activity and more by the construction of worldwide financial infrastructure.
"The last dance of crypto's old era and the hope and deep belief that our work at Plasma can get us to a new golden age for our space," Ebtikar stated.