On April 8, digital asset hedge fund Split Capital announced its closure, with its founder Zaheer Ebtikar set to join Plasma, a stablecoin startup backed by Peter Thiel. The closure of Split Capital reflects structural shifts in the cryptocurrency market, indicating a decline in the suitability of traditional hedge fund models within the current digital asset landscape. Ebtikar stated on social media that Split Capital remained profitable in both 2024 and 2025, achieving annualized returns exceeding 100%. However, as the market increasingly moves away from rapid momentum trading strategies, he decided to terminate the fund’s operations.
In recent years, momentum trading and narrative-driven strategies in the cryptocurrency sector have delivered substantial returns to investors. Yet, Ebtikar pointed out that as the market matures, trading models focused on short-term momentum are no longer rewarded. Investors are now paying greater attention to long-term value and infrastructure development. This shift suggests that digital asset investment will increasingly favor long-term strategies and ecosystem value over simple short-term arbitrage or speculative activities.
Against this backdrop, Ebtikar has expressed confidence in Plasma’s stablecoin vision. Plasma focuses on building stablecoin settlement systems and global financial access infrastructure. The company secured $24 million in funding last February, with investments from Framework Ventures, Bitfinex, Peter Thiel, and Tether CEO Paolo Ardoino. Such infrastructure-focused projects are expected to become core drivers in the next phase of digital asset development, steering the market away from speculation toward value creation.
As Plasma’s Chief Strategy Officer, Ebtikar will oversee partnership expansion, growth strategies, and market promotion. He will also engage proactively with investors and regulators ahead of the launch of Plasma One. This career move not only reflects a shift in individual professional direction but also signals a broader industry trend: the transition from momentum-driven strategies toward infrastructure development and stablecoin ecosystem growth.
Overall, the exit of Split Capital and Ebtikar’s move to Plasma indicate that the cryptocurrency market is entering a new phase. While short-term speculative volatility may persist, the long-term trend is tilting toward stablecoin infrastructure, global financial access, and sustainable ecosystem development. Investors should focus on high-value, long-term oriented project opportunities while remaining cautious of volatility risks arising from ongoing market structural adjustments.