Ex-LedgerPrime employees start liquid token hedge fund called Split Capital

Former employees of crypto trading firm LedgerPrime have launched a new hedge fund that will focus on liquid tokens.

Christened Split Capital, the fund was founded by LedgerPrime alumni Zaheer Ebtikar and Michael Churchouse, along with Nai Boonkongkird. LedgerPrime former chief investment officer Shiliang Tang will serve as an advisor. 

"It's been a long time coming but I'm thrilled to announce the official launch of Split Capital, a liquid digital assets fund," Ebtikar posted to X on Friday. "Split Capital, as a concept, has been in my mind for years now and it's been a dream to finally see it come to fruition."

Primary backers of the new fund include Novi Loren, UTXO Management and Dan Matuszewski, co-founder of CMS Holdings. Split Capital would not say how big the fund is, citing regulatory restrictions.

Fortune first reported the news earlier on Friday. 

Taking the long view

Split Capital's investment strategy will involve taking a longer view on token investments, opposed to divesting as soon as digital assets become liquid, a common strategy among many venture capital firms active in crypto, according to Ebtikar. Split Capital is for investors with the appetite to invest for the longer term, the new fund said.

As an example of which type of tokens Split Capital might focus on, Ebtikar pointed to a recommendation he and his team made in December 2022, when they recommended buying Solana, Lido and Synapse.

Defunct crypto exchange FTX acquired LedgerPrime in 2021. Ebtikar worked as a portfolio manager for a year before leaving in September 2023, according to his LinkedIn profile.  Churchouse also used to work on the DeFi investment team at Nickel Digital Asset Management.