Split Capital winds down as founder joins stablecoin startup Plasma

Split Capital, a digital asset hedge fund founded by investor Zaheer Ebtikar, is shutting down, with the founder joining Peter Thiel-backed stablecoin startup Plasma.

Ebtikar announced the news in an X post on Tuesday, saying Split Capital was profitable both in 2024 and 2025, and delivered over 100% in returns.

“We were a top performing fund by every mark,” Ebtikar claimed, adding that his decision to wind down the business was driven by a belief that the crypto market had shifted away from strategies that hedge funds are designed to capture.

“The hedge fund model did not make sense for crypto, in perpetuity,” he said.

Ebtikar’s decision came amid continued pressure on crypto hedge funds, which have reportedly faced more challenging market conditions since the 2022 market downturn.

Crypto industry no longer rewards traders chasing momentum, Ebtikar argues

Ebtikar described his early years in crypto as “PvP button-clicking,” where traders competed in fast-moving markets driven by momentum and narratives. But after nearly a decade, he said those conditions have changed.

“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 said.

Ebtikar said that many investors, including critics, were ultimately right to question whether funds such as Split Capital were sustainable in a rapidly evolving market.

“As time went on, our conviction narrowed around a small number of founders and verticals I genuinely believed in,” Ebtikar said.

Betting on Plasma’s stablecoin vision

Ebtikar said his conviction in Plasma grew after working closely with its founding team throughout 2024 and 2025.

Plasma is focused on building infrastructure for stablecoin settlement and global financial access. The platform raised $24 million in February last year from investors such as Framework Ventures, Bitfinex, Peter Thiel and Tether CEO Paolo Ardoino.

Related: Standard Chartered says faster stablecoin turnover could curb demand

As chief strategy officer at Plasma, Ebtikar will work across partnerships, growth and go-to-market efforts, as well as engage with investors and policymakers ahead of the rollout of Plasma One and ongoing ecosystem expansion.

He framed the move as part of a larger belief that crypto is entering a new phase defined less by speculation and more by building global financial systems.

“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 said.

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