- Numerai secures US$500M (AU$765M) commitment from JPMorgan, doubling current AUM.
- Crowdsourced AI models staked with Numeraire tokens guide trading and investment strategies.
- JPMorgan’s involvement strengthens institutional legitimacy for crypto-integrated hedge fund operations.
Crowdsourced hedge fund Numerai has secured a pledge worth US$500 million (AU$765 million) from JPMorgan Asset Management, more than doubling its existing assets under management of US$450 million (AU$688 million).
The fund, which combines crowdsourcing, artificial intelligence, and blockchain-based trading models, said the new allocation would be deployed gradually over the coming twelve months.
Thousands of freelance data scientists contribute their predictive models by staking Numerai’s token, Numeraire (NMR), with accurate submissions earning rewards while poor-performing ones lose their stake. Strong models are then added to the hedge fund’s broader investment strategy.
Performance results helped drive JPMorgan’s decision. Numerai achieved a net return of more than 25% in 2024 after losses the previous year, proving its resilience and ability to attract institutional partners. Paul Tudor Jones, one of the world’s best-known hedge fund managers, is already among its backers.
Related: Bloomberg: Bitcoin Miner MARA Eyes $168M Deal for Majority Stake in French AI Data Firm
Market Momentum Builds
The NMR token saw an immediate reaction after the announcement. Prices surged by as much as 41%, with daily volumes jumping by over 880%. Trading activity lifted NMR from about US$8.11 (AU$12.41) to intraday highs near US$19.55 (AU$29.89) before cooling and settling above US$11 (AU$16.83).
Numerai’s founder Richard Craib explained that investors were slow to support the company in its early years because of its unusual model, but interest increased once a solid performance record was established.
People don’t really want to invest until there’s a track record. And when you’re doing something super unusual and different, like we are, they might wait even longer before they get excited.
JPMorgan has not publicly commented on the specifics of its Numerai commitment, though the bank has been steadily expanding its digital asset exposure through partnerships, blockchain research, and experiments with stablecoin products.
Related: Aave Labs Unveils Horizon to Bring Stablecoin Borrowing Backed by Tokenised Treasuries
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