Split Capital wound down a winning crypto fund — the business model had died
After returns of about 100% (2024) and 20% (2025), Zaheer Ebtikar returned investors' capital and joined stablecoin startup Plasma as chief strategy officer.
What was changed
Fortune reported exclusively in April 2026 that Split Capital, the digital-assets hedge fund Zaheer Ebtikar unveiled in January 2024 as crypto prices soared, was winding down — and that Ebtikar was joining stablecoin startup Plasma as chief strategy officer.
The wind-down was not from lack of success: Ebtikar told Fortune his returns were around 100% in 2024 and 20% in 2025, and the fund's assets under management numbered in the eight figures, with backers including venture fund Novi Loren and digital asset company UTXO Management. He believes crypto hedge funds are simply no longer a workable business: in late 2025 Split Capital gave investors back their capital and now operates as a smaller shop running only its own money.
The shakeout is sector-wide — Paradigm is expanding into AI and robotics, Multicoin's Kyle Samani left to invest beyond crypto, and Dragonfly's Rob Hadick called crypto venture a 'mass extinction event', with Bitcoin and Ethereum down almost 50% from their 2025 highs. Ebtikar, who had long advised Plasma's CEO Paul Faecks, now helps the stablecoin company prepare a consumer app pitched as a stablecoin-powered competitor to neobanks like SoFi and Revolut.
Why it worked
ETFs from giants like BlackRock and Fidelity gave institutions direct exposure, removing the hedge funds' original role of taking on token risk.
Crypto prices down almost 50% from their 2025 highs compressed the whole investing landscape.
Stablecoins offered a growthier bet than managing a shrinking niche, and Ebtikar already knew Plasma from advising it.
What can be applied
Shut a winning business while you can still choose the terms — when ETFs removed the reason for crypto hedge funds, good returns could not save the model.
Aftermath
Ebtikar took the chief strategy officer role at Plasma — senior partnerships, investor relationships and a direct hand in product — while Split Capital continues operating with only its own capital.