Former LedgerPrime Employees Launch Split Capital Hedge Fund Focused on Liquid Tokens
A group of former employees from crypto trading firm LedgerPrime has announced the launch of a new hedge fund called Split Capital. The fund will concentrate on liquid tokens and aims to take a long-term approach to token investments, distinguishing itself from typical venture capital firms in the crypto space.
The founders of Split Capital include Zaheer Ebtikar, Michael Churchouse, and Nai Boonkongkird, with Shiliang Tang, former chief investment officer at LedgerPrime, serving as an advisor. The primary backers of the fund are Novi Loren, UTXO Management, and Dan Matuszewski. However, the fund size has not been disclosed due to regulatory restrictions.
A Different Strategy for Token Investments
Split Capital seeks to support crypto projects over longer time frames and contribute to building a more robust ecosystem. The fund aims to avoid the common practice of divesting once assets become liquid. Instead, it focuses on undervalued investments and targets the middle 80% of the token market that often gets overlooked.
Zaheer Ebtikar emphasized that Split Capital’s strategy involves considering the long-term potential of tokens. As an example, he mentioned recommending Solana, Lido, and Synapse in December 2022. The founders believe that the current incentive structures in crypto venture capital can harm the market and aim to provide a different approach.
Challenges and Regulatory Compliance
Before founding Split Capital, Zaheer Ebtikar worked as a portfolio manager at LedgerPrime until September 2023. The transition of LedgerPrime under Alameda and FTX’s umbrella created challenges for the team. Despite these challenges, Split Capital is registered with the Commodity Futures Trading Commission (CFTC) and emphasizes its commitment to regulatory compliance and responsible trading practices.
The fund launched earlier this month, with optimism about its unique approach in the crypto market. Split Capital aims to attract investors seeking a longer-term investment horizon and contribute to the growth of the overall crypto ecosystem.
Hot Take: Split Capital’s Focus on Long-Term Value
Split Capital’s launch as a hedge fund focused on liquid tokens and long-term value is an interesting development in the crypto space. By adopting a different approach than traditional venture capital firms, Split Capital aims to support undervalued projects and contribute to the growth of the ecosystem beyond speculation.
This strategy aligns with the increasing need for stability and sustainability in the crypto market. Split Capital’s emphasis on regulatory compliance also adds credibility to its operations. As more investors seek opportunities with longer time horizons, funds like Split Capital could play a significant role in shaping the future of token investments.