Zaheer Ebtikar, founder of the digital assets hedge fund Split Capital, is winding down the firm as he transitions into the stablecoin sector, joining Plasma, a startup focused on stablecoins, as chief strategy officer, according to a report by Fortune.
Split Capital, launched in January 2024 during a crypto boom, delivered strong returns – roughly 100% in 2024 and 20% in 2025 – but Ebtikar said the crypto hedge fund model is no longer sustainable. In late 2025, the firm returned capital to investors, which included Novi Loren and UTXO Management, though it will continue to operate on a smaller scale with Ebtikar’s own funds.
The closure reflects broader shifts in the crypto landscape. Established players like Paradigm are diversifying into AI and robotics, while veteran investor Kyle Samani has stepped back from crypto-focused investing. According to Rob Hadick of Dragonfly, the sector is experiencing a “mass extinction event.” Part of the reason is the rise of digital asset ETFs, which allow institutional investors to gain crypto exposure without relying on hedge funds.
Ebtikar is betting on stablecoins as the next growth frontier. After meeting Plasma CEO Paul Faecks, he became an early backer and is now taking an active C-suite role. His responsibilities include product development, partnerships, investor relations, and promoting the utility of Plasma’s blockchain and forthcoming consumer app – designed to rival neobank offerings like SoFi and Revolut.
