Split Capital Liquidates as Founder Moves to Stablecoin Startup Plasma

The cryptocurrency hedge fund Split Capital has officially announced the liquidation of its external capital, returning funds to investors as its founder, Zaheer Ebtikar, transitions to a new leadership role. Following a period of significant growth, Ebtikar will join the stablecoin-focused company Plasma as Chief Strategy Officer (CSO). This shift highlights a broader evolution in the digital asset management landscape, as industry veterans pivot toward infrastructure and consumer-facing financial applications.

Shift in Fund Management and Market Dynamics

Despite the decision to wind down external operations, Split Capital demonstrated strong performance metrics prior to its liquidation. The fund reported returns of approximately 100% in 2024 and roughly 20% in 2025, with its assets under management (AUM) reaching an eight-figure valuation in USD. Moving forward, the entity will transition into a smaller-scale operation utilizing only internal capital. Ebtikar cited fundamental shifts in the market structure as a primary reason for the liquidation, specifically pointing to the institutionalization of the asset class.

• The emergence of Spot Bitcoin and Ethereum ETFs from giants like BlackRock and Fidelity.
• Increased direct exposure for large institutions, reducing the demand for traditional hedge fund models.
• A growing saturation in the active management space for liquid tokens.

Plasma: A New Competitor in the FinTech Space

Ebtikar’s move to Plasma signals a strategic bet on the growth of stablecoin utility. Plasma is currently developing a consumer-facing application designed to integrate stablecoin transactions into everyday finance. The startup aims to position itself as a Web3-native alternative to traditional neobanks and fintech platforms.

Large institutions can now gain direct exposure through crypto ETFs issued by firms like BlackRock and Fidelity, making the traditional crypto hedge fund model less sustainable.

By competing with established players such as SoFi and Revolut, Plasma intends to leverage the efficiency of blockchain technology to offer superior retail banking services. The firm's focus reflects a trend where stablecoins are increasingly viewed not just as trading pairs on exchanges, but as the backbone of a new global payment infrastructure.

The liquidation of Split Capital serves as a case study for the changing role of specialized crypto funds in an era of institutional adoption. As Exchange-Traded Funds (ETFs) democratize access to digital assets, human capital and expertise are migrating toward the development of decentralized financial products. The success of Plasma will likely depend on its ability to bridge the gap between complex blockchain protocols and the user-friendly experience demanded by mainstream consumers.