Crypto investor Zaheer Ebtikar announced the closure of his hedge fund, Split Capital, citing the inefficiency of this business model for the digital asset industry.
— Zaheer (@SplitCapital) April 7, 2026
According to him, Split Capital, founded in 2024, was profitable throughout its existence, achieving a net return of 100%.
Despite the fund being “one of the best by all metrics,” Ebtikar decided to close the business, as such a structure “does not make sense for the crypto industry in the long term.”
Unlike traditional assets, the crypto sector:
- is rapidly changing and fragmented;
- depends on tokenomics and network effects;
- combines venture and public markets in one environment.
The number of quality projects is decreasing, and many crypto companies are merely simulating business, he added.
The primary option for long-term investments has effectively become the liquid token market. Most investments are aimed at quick profits rather than supporting functional and viable products, Ebtikar believes.
“After more than $100 billion in venture funding and six years of euphoria, we have returned to a humbling starting point. Investors, operators, and traders are asking the same question: ‘What will the future be and where is the value?'” stated the founder of Split Capital.
Ebtikar decided to focus on participating in the stablecoin settlement project Plasma, being one of the early team members. He will take on the role of strategic director of the EVM-compatible L1 platform operator.
The investor described the “stablecoin” sector and Plasma as a “new era” capable of scaling to meet the demand for “trillions of dollars in settlements” through integration with traditional financial systems.
Earlier in March, Sami Start, founder of infrastructure provider Transak, noted that venture funds have become more selective and reduced the number of deals in the crypto industry.