In January 2024, as crypto prices were soaring, Zaheer Ebtikar unveiled a new digital assets hedge fund called Split Capital. Two years later, he’s winding that firm down as he pivots to one of the buzziest sectors in crypto: stablecoins, or cryptocurrencies pegged to real-world assets like the U.S. dollar. On Tuesday, the former hedge fund manager announced that he was joining the stablecoin startup Plasma as chief strategy officer.
Ebtikar’s decision to wind down Split Capital wasn’t due to any lack of success. The founder said that his returns in 2024 and 2025 were around 100% and 20%, respectively. Rather, he believes that crypto hedge funds are no longer a workable business.
“The entire hedge fund industry in crypto…
