Tag: JPMorgan

• Numeraire price is up 40% to near $12.40 after JPMorgan secured $500 million capacity in Numerai.
• The NMR token jumped to highs last seen in February.
• JPMorgan’s move sees Numerai more than double its size.

Numeraire (NMR), the native token of the San Francisco-based crypto hedge fund Numerai, has surged more than 40% in the past 24 hours after JPMorgan announced investment in the hedge fund.

On Aug. 26, the Numerai team announced that JPMorgan has secured $500 million in capacity in Numerai, triggering the sharp price surge. Gains outpaced Cronos (CRO), which spiked after Trump Media announced a partnership with Crypto.com.

As NMR price broke to near $12.40, Numeraire’s daily volume jumped more than 800% to over $115 million. The token’s price reached its highest price since February.

JPMorgan secures $500 million capacity in Numerai hedge fund

As the intersection between artificial intelligence and decentralised finance grows, the crypto sector has become a magnet for top collaborations.

Numerai, the San Francisco-based hedge fund built by data scientists, is one of those in the ascendancy.

On Tuesday, the platform revealed that it had secured a $500 million commitment from JPMorgan Asset Management, with this coming after Numerai saw its assets grow from $60 million to $450 million.

The $500 million allocation follows Numerai’s exceptional performance in 2024, delivering a 25.45% net return with a Sharpe ratio of 2.75.

As highlighted in Numerai’s blog, investment from JPMorgan, one of the largest allocators to quantitative strategies globally, signals Wall Street’s growing confidence in AI-powered financial models.

The Paul Tudor Jones-backed hedge fund is set to see its assets under management more than double after this move.

A rebound that caught Wall Street’s attention

Numerai’s path has not been without setbacks. The firm lost 17% in 2023, echoing the struggles of other experimental quant platforms such as Quantopian, which shut down in 2020 after failing to deliver sustainable returns.

However, Numerai rebounded with a 25% gain in 2024 and has strung together 15 consecutive months of positive performance.

That turnaround drew the attention of institutional investors. “People don’t really want to invest until there’s a track record,” founder Richard Craib said in a Bloomberg report. “And when you’re doing something super unusual and different, like we are, they might wait even longer before they get excited.”

So far in 2025, Numerai’s flagship fund, Numerai One, is estimated to be up about 6% net of fees, compared to a 7% return for an index of quant equity market-neutral funds tracked by Aurum.

The fund has delivered gains in all but one year since inception, including a 20% rally in 2022 when broader markets slumped.

Big news for NMR?

Numerai, founded in 2019, operates a unique crowdsourced hedge fund model that leverages AI and data science.

On the platform, global data scientists can submit stock market predictions through an API and stake NMR tokens to back their models. Successful predictions earn rewards, while incorrect ones result in token burns, creating a dynamic incentive structure.

Additionally, Numerai has recently announced a repurchase of $1 million in NMR, a move that has the data science community excited.

The JPMorgan partnership not only validates Numerai’s vision but also highlights the potential for Numeraire in the crypto-AI sector.

With the hedge fund looking to scale its team and operations, the investor attention on NMR will likely be huge, particularly following this move by JPMorgan.

NMR price reached highs above $93 in May 2021 and  $25.80 in December 2024.