In a significant shift within the cryptocurrency landscape, Zaheer Ebtikar has announced his transition from the hedge fund realm to an emerging sector: stablecoins. After introducing his digital assets hedge fund, Split Capital, in January 2024, Ebtikar has decided to wind down the firm, citing diminishing prospects for crypto hedge funds. His hedge fund, which delivered impressive returns of 100% and 20% in 2024 and 2025, respectively, faced challenges stemming from a broader downturn within the crypto hedge fund industry.
Ebtikar revealed that the decision to close Split Capital was not rooted in financial hardship but rather a reflection of the current state of the crypto investing ecosystem. “The entire hedge fund industry in crypto is kind of down and out,” he stated in a recent interview, indicating a shift in investor sentiment and market dynamics.
As Split Capital returned investors’ capital by late 2025, it was supported by notable backers, including Novi Loren and UTXO Management. Although Ebtikar did not disclose specific figures, he mentioned that assets under management hovered in the “eight figures.” Moving forward, the firm will continue to operate but will focus solely on its own capital for investments.
The decision to pivot comes amid a turbulent period for crypto markets, characterized by significant price declines in major cryptocurrencies like Bitcoin and Ethereum, which have fallen nearly 50% from their 2025 peaks. Industry experts have characterized this upheaval as a “mass extinction event” for crypto ventures, with prominent figures such as Kyle Samani moving away from traditional crypto-focused investment strategies.
Ebtikar has pointed to the growing acceptance of digital asset exchange-traded funds (ETFs) as a major factor contributing to the decline of crypto hedge funds. In the earlier years of cryptocurrency, hedge funds took on substantial risks, filling a gap left by institutional investors hesitant to engage with digital currencies. However, as firms like BlackRock and Fidelity begin to offer ETFs that provide exposure to these assets, the landscape has evolved.
Turning his focus to stablecoins—cryptocurrencies pegged to tangible assets—Ebtikar joined the startup Plasma as chief strategy officer. During his time as an advisor to CEO Paul Faecks, Ebtikar became convinced of the potential of stablecoins, viewing them as a transformative force in financial transactions.
In his new role, Ebtikar aims to help Plasma develop its stablecoin-powered consumer app, positioning it as a competitor to established neobanks like SoFi and Revolut. His responsibilities will involve shaping strategic partnerships and investor relations, as well as contributing directly to product development.
Ebtikar expressed excitement about this new chapter, stating, “This is a culmination of being in crypto for nine years now, seeing what works, what doesn’t, and being like, ‘This is actually what people want.’” As the industry evolves, Ebtikar’s shift underscores a broader trend of adaptation and innovation within the cryptocurrency space.
