In a strategic pivot reflecting broader industry trends, cryptocurrency hedge fund Split Capital has officially ceased operations and returned capital to its investors. Simultaneously, its founder, Zaheer Ebtikar, has joined stablecoin infrastructure startup Plasma as its Chief Strategy Officer.
Split Capital confirmed its closure this week, completing an orderly wind-down process. The fund, which launched in a previous market cycle and specialized in quantitative strategies, was reportedly profitable in both 2024 and 2025, delivering over 100% in returns. Founder Zaheer Ebtikar stated his decision was driven by a belief that the crypto market has matured away from the momentum-driven strategies hedge funds are designed to capture. "The hedge fund model did not make sense for crypto, in perpetuity," he said, arguing the industry now rewards long-term value building over speculative trading.
Ebtikar's new role at Plasma, a company backed by investors including Peter Thiel, Framework Ventures, Bitfinex, and Tether CEO Paolo Ardoino, signals a talent migration towards foundational financial technology. Plasma, which raised $24 million in February 2025, focuses on building infrastructure for stablecoin settlement and global financial access, positioning itself as a technology provider rather than a direct issuer.
This transition underscores ongoing consolidation within the crypto hedge fund sector, attributed to increased regulatory requirements, market volatility, and a shift in investor preference toward specialized infrastructure investments. Market observers view such managed fund closures as a sign of growing operational maturity within the cryptocurrency investment community.
