Crypto Hedge Fund Era Ending as Split Capital Closes Amid Sector Shifts

Crypto hedge fund Split Capital has closed down after delivering over 100% returns since its launch in January 2024. Founder Zaheer Ebtikar cited structural shifts in the broader crypto industry as the reason for the wind-down.

Ebtikar argued that the hedge fund model is no longer suitable for the sector, pointing to the increasing availability of spot ETFs from major financial institutions such as BlackRock and Fidelity. This has made it easier for institutional investors to access cryptocurrencies without needing a fund manager.

The closure reflects Ebtikar's view that the next phase of crypto will be defined by builders rather than traders. As Chief Strategy Officer at Plasma, he will lead go-to-market strategy for the company's stablecoin neobank app, which is set to launch in 2026.