"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 is kind of down and out. The winding down of Split Capital comes as the crypto investing landscape appears rocky."
"Ebtikar believes the death of crypto hedge funds is partly a result of the success of digital asset exchange-traded funds. The shakeout isn't just because prices for cryptocurrencies like Bitcoin and Ethereum are down almost 50% since their all-time highs in 2025."
Zaheer Ebtikar announced the winding down of his hedge fund Split Capital to transition to the stablecoin sector, joining Plasma as chief strategy officer. Despite achieving returns of 100% and 20% in 2024 and 2025, respectively, Ebtikar believes crypto hedge funds are no longer sustainable. The crypto investment landscape is shifting, with established firms diversifying into AI and robotics, and the rise of digital asset exchange-traded funds contributing to the decline of traditional hedge funds in the crypto space.
Read at Fortune
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