- Numeraire’s price has risen by 40% to approximately $12.40 following JPMorgan’s $500 million investment in Numerai.
- The NMR token has surged to levels last observed in February.
- JPMorgan’s investment significantly increases Numerai’s overall capacity.
Numeraire (NMR), the token associated with the San Francisco-based crypto hedge fund Numerai, has experienced a surge of over 40% within the last 24 hours due to JPMorgan’s announcement of an investment in the hedge fund.
On Aug. 26, the Numerai team declared that JPMorgan secured a $500 million capacity within Numerai, which sparked this rapid increase in price. The gains have surpassed those of Cronos (CRO), which rose after Trump Media partnered with Crypto.com.
As the NMR price approached $12.40, Numeraire’s daily trading volume surged by over 800% to exceed $115 million, marking its highest price level since February.
JPMorgan secures $500 million in Numerai hedge fund
As the convergence of artificial intelligence and decentralized finance expands, the cryptocurrency sector has attracted significant collaborative efforts.
Numerai, the hedge fund based in San Francisco and founded by data scientists, is among those benefiting from this trend.
On Tuesday, the platform disclosed a $500 million commitment from JPMorgan Asset Management, following a remarkable growth of assets from $60 million to $450 million.
This $500 million allocation comes after Numerai’s impressive performance in 2024, achieving a 25.45% net return and a Sharpe ratio of 2.75.
According to Numerai’s blog, the investment from JPMorgan, a major player in quantitative strategies on Wall Street, reflects an increasing confidence in AI-driven financial models.
This move is anticipated to more than double the assets under management for the Paul Tudor Jones-backed hedge fund.
A rebound that caught Wall Street’s eye
Numerai’s journey has encountered challenges. In 2023, it reported a 17% loss, mirroring the difficulties faced by other experimental quant platforms like Quantopian, which ceased operations in 2020 after failing to maintain sustainable returns.
Nevertheless, Numerai rebounded with a 25% gain in 2024, achieving 15 consecutive months of positive outcomes.
This turnaround has captured the attention of institutional investors. Founder Richard Craib noted in a Bloomberg report, “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.”
In 2025, Numerai’s flagship fund, Numerai One, is estimated to have gained about 6% net of fees, compared to a 7% return for a benchmark of quant equity market-neutral funds tracked by Aurum.
The fund has reported positive returns in all but one year since it began, including a notable 20% increase in 2022, even as broader markets faced declines.
Significant news for NMR?
Founded in 2019, Numerai has developed a distinctive crowdsourced hedge fund model that utilizes AI and data science.
Through the platform, global data scientists can submit stock market forecasts via an API and stake NMR tokens to support their models. Successful predictions yield rewards, while failed ones lead to token burns, establishing a dynamic incentive system.
Moreover, Numerai has recently declared a buyback of $1 million in NMR, generating excitement within the data science community.
The JPMorgan partnership not only affirms Numerai’s vision but also underscores the potential for Numeraire in the crypto-AI landscape.
As the hedge fund aims to expand its team and operations, interest in NMR among investors is likely to surge, especially following JPMorgan’s involvement.
NMR reached peaks above $93 in May 2021 and $25.80 in December 2024.
