Split Capital Founder Shuts Down Profitable Hedge Fund, Calls Model Obsolete for Crypto

A Profitable Fund Closed on Principle

Zaheer Ebtikar, founder of crypto hedge fund Split Capital, has announced the closure of his firm — not because of poor performance, but because he believes the hedge fund structure itself is incompatible with the digital asset industry. Founded in 2024, Split Capital was profitable throughout its existence and delivered 100% net returns to investors.

Ebtikar shared the news via social media:

Original post — Zaheer (@SplitCapital), April 7, 2026

Despite acknowledging that the fund ranked among the best performers across key metrics, Ebtikar concluded that the hedge fund structure "doesn't make sense for the crypto industry in the long term."

Why This Matters

Ebtikar's decision highlights a growing tension between traditional investment vehicles and the unique characteristics of the cryptocurrency market. According to him, the crypto sector differs fundamentally from conventional asset classes in several critical ways:

• It evolves rapidly and remains highly fragmented;
• It depends heavily on tokenomics and network effects;
• It combines venture and public market dynamics within a single environment.

The number of quality projects is shrinking, Ebtikar noted, and many crypto-native companies are merely simulating real business activity. The liquid token market has effectively become the primary channel for long-term investment, yet most capital is chasing quick returns rather than backing functional, viable products.

$100 Billion in VC and a "Humbling" Reset

Ebtikar offered a blunt assessment of the industry's current state. After more than $100 billion in venture funding and six years of euphoria, the market has returned to what he called a "humbling baseline." Investors, operators, and traders are all asking the same question: what does the future look like, and where is the real value?

His perspective aligns with broader industry sentiment. In March 2026, Transak founder Sami Start observed that venture funds have become far more selective, significantly reducing the number of deals they pursue in the crypto space.

New Direction: Stablecoins and Plasma

Ebtikar is not leaving the crypto industry. Instead, he is pivoting to Plasma, a stablecoin settlement project where he has been an early team member. He will take on the role of Chief Strategy Officer for the operator of an EVM-compatible L1 platform.

Ebtikar described the stablecoin sector and Plasma specifically as a "new era" capable of scaling to meet demand for "trillions of dollars in settlements" by integrating with traditional financial systems. His transition from running a hedge fund to an operational role in blockchain infrastructure signals a broader shift among experienced crypto investors — away from speculative strategies and toward building real financial rails.