Split Capital, a newly established hedge fund, has emerged in the market with an exceptional emphasis on liquid tokens. The pioneers behind this groundbreaking venture are Zaheer Ebtikar, Michael Churchouse, and Nai Boonkongkird, all of whom are former employees of the renowned crypto trading firm LedgerPrime. The counsel of Shiliang Tang, the ex-chief investment officer at LedgerPrime, adds an invaluable advisory role to the team at Split Capital.
Novi Loren, UTXO Management, and Dan Matuszewski, the co-founder of CMS Holdings, are among the main supporters of Split Capital. Nevertheless, they have chosen not to disclose the size of the fund due to regulatory limitations.
The incredible aspect of this fund lies in its commitment to taking a more visionary stance when it comes to token investments. Unlike the prevalent trend among venture capital firms involved in the crypto realm, which involves selling off digital assets as soon as they gain liquidity, the fund has a distinct objective of adopting a longer-term approach. Split Capital has been specifically curated to cater to those investors who have a desire for a more expansive investment horizon.
Zaheer Ebtikar highlighted the importance of assessing the future possibilities of tokens as a central element of the fund’s approach. To illustrate the types of tokens that Split Capital may prioritise, Ebtikar mentioned a specific suggestion put forth by him and his team in December 2022. Their recommendation encompassed the acquisition of Solana, Lido, and Synapse.
Split Capital believes that the vast majority of the token market, representing 80%, is often neglected due to the allure of immediate gains. In contrast, Ebtikar states its commitment to investing in crypto projects with a long-term vision, thereby contributing to the development of a stronger ecosystem. Moreover, Ebtikar highlights the importance of aligning with founders and resisting the common industry practice of swiftly moving on from assets once they become easily tradable.
Split Capital Takes a Long-Term Approach to Token Investments
Before the initiation of Split Capital, Zaheer Ebtikar, one of its co-founders, it has held the position of a portfolio manager at LedgerPrime, a trading firm that was acquired by FTX in 2021. The integration of LedgerPrime into Alameda and FTX’s U.S. subsidiary, along with its association with FTX’s bankruptcy proceedings, presented a plethora of obstacles and complexities.
According to Ebtikar’s LinkedIn profile, he spent a year employed as a portfolio manager before departing in September 2023. Additionally, Ebtikar gained experience on the DeFi investing team at Nickel Digital Asset Management alongside Churchhouse.
Ebtikar, together with Michael Churchouse and Nai Boonkongkird, established Split Capital to adopt a more extended outlook on token investments, in contrast to the customary structures of crypto venture capital. The founders express discontentment towards the prevailing short-term focus in crypto VC, which is frequently influenced by the fluidity of token investments.
Split Capital holds the belief that the conventional incentive mechanisms utilized in crypto venture capital can have detrimental effects on the broader market. To foster the growth of the ecosystem beyond mere speculation, the fund plans to invest in relatively unpopular tokens, seeking opportunities that are undervalued and contributing to their development.
According to Ebtikar, most of the funds invested in cryptocurrency come from venture capitalists who are instructed to invest in the early stages, promote the technology, and sell at higher prices. However, Ebtikar emphasises the necessity of adopting an alternate strategy. Their fund prioritizes the discovery of worth in long-term investments rather than chasing immediate profits.
Split Capital, despite facing various obstacles and the ever-changing environment of cryptocurrency, has successfully obtained registration with the Commodity Futures Trading Commission (CFTC). This achievement highlights the firm’s dedication to adhering to regulations and conducting trading activities responsibly. Demonstrating unwavering optimism, the fund entered the crypto market earlier this month, confident in its distinctive qualities.
Frequently Asked Questions:
Can you please provide insights on the origins of Split Capital and the individuals behind its establishment?
Split Capital, a hedge fund that concentrates on viable cryptocurrencies, emerged from the collaboration of ex-staff members of LedgerPrime. Its pioneering minds encompass Zaheer Ebtikar, Michael Churchouse, and Nai Boonkongkird, alongside the insightful guidance of Shiliang Tang, former CIO at LedgerPrime.
Split Capital’s main supporters – who are they?
Novi Loren, UTXO Management, and CMS Holdings’ co-founder, Dan Matuszewski, are among the main supporters of Split Capital. Nevertheless, the exact size of the fund remains undisclosed as a result of regulatory limitations.
In the realm of cryptocurrencies, what distinguishes Split Capital from its counterparts in the hedge fund arena, if we may inquire?
Split Capital takes a distinct approach when it comes to investing in tokens, choosing to hold onto them for a longer period rather than quickly selling them off once they become easily tradable. This particular strategy caters to investors who are looking for a more extended time frame for their investments.
In what manner does Split Capital choose tokens to invest in?
Split Capital’s primary focus lies in recognizing the enduring possibilities of tokens and providing sustained assistance to crypto undertakings. Its objective is to play a key role in the development of a resilient ecosystem by refraining from swiftly abandoning assets upon attaining liquidity.
Which kinds of tokens are of interest to Split Capital?
In December 2022, the founders put forth a suggestion to purchase Solana, Lido, and Synapse as an illustration. The primary objective of the fund is to channel investments towards lesser-known tokens, with a focus on seeking undervalued opportunities that have the potential to fuel the expansion of the ecosystem.
For what reason does Split Capital place particular importance on adopting a more extended outlook when investing in tokens?
The creators of Split Capital are not pleased with the prevailing trend of limited timeframes in the world of cryptocurrency venture capital. They argue that the reward systems of traditional crypto venture capital ventures can adversely impact the entire market. Instead, Split Capital is dedicated to identifying worth in enduring investments as opposed to chasing immediate profits.
What measures has Split Capital taken to ensure regulatory compliance?
Split Capital has successfully navigated obstacles and embraced the ever-changing world of cryptocurrencies, earning recognition from the Commodity Futures Trading Commission (CFTC). This acknowledgement highlights their dedication to meeting regulatory requirements and fostering ethical trading standards.
What was the exact date that Split Capital was introduced to the market?
The newly introduced fund entered the market this month, filled with enthusiasm regarding its exceptional qualities within the realm of cryptocurrencies.