Crypto investor Zaheer Abtikar has announced the closure of his hedge fund, Split Capital, citing the inefficiency of this business model for the digital asset industry.
— Zaheer (@SplitCapital) April 7, 2026
Founded in 2024, Split Capital was profitable throughout its existence, achieving a net return of 100%.
Despite being one of the top-performing funds, Abtikar decided to shut down the business, stating that such a structure "doesn't make sense for the crypto industry in the long run."
Unlike traditional assets, the crypto sector:
- is rapidly changing and fragmented;
- depends on tokenomics and network effects;
- blends venture and public markets in a single environment.
The number of quality projects is declining, and many cryptocurrency creators are merely imitating businesses, he added.
The primary option for long-term investments has effectively become the market for liquid tokens. Most investments are focused on quick profits rather than supporting functional and viable products, according to Abtikar.
"After more than $100 billion in venture funding and six years of euphoria, we have returned to a humiliating baseline. Investors, operators, and traders are asking the same question: 'What will the future look like and where is the value?'" said the founder of Split Capital.
Abtikar has decided to focus on participating in the stablecoin settlement project Plasma, being one of the early team members. He will take on the role of strategic director for the operator of the EVM-compatible L1 platform.
The investor described the "stablecoin" sector and Plasma as a "new era" capable of scaling to meet the demand for "trillions of dollars in settlements" through integration with traditional financial systems.
In March, Sami Start, founder of the infrastructure provider Transak, noted that venture funds have become more selective and reduced the number of deals in the crypto industry.