TLDR
- JPMorgan Asset Management allocated $500 million to AI hedge fund Numerai
- Numerai’s assets grew from $60 million to $450 million over three years
- Native token Numeraire (NMR) jumped 38% after the investment announcement
- The fund delivered 25% net returns in 2024 using crowdsourced AI models
- Investment shows institutional appetite for crypto-AI hybrid strategies
JPMorgan Asset Management has allocated up to $500 million to Numerai, an artificial intelligence hedge fund that operates its own cryptocurrency token. The investment announcement sent Numerai’s native token Numeraire (NMR) soaring 38% to $11.40.
Numerai operates as a San Francisco-based hedge fund that uses crowdsourced AI models from thousands of data scientists worldwide. The fund has experienced rapid growth, expanding from $60 million to $450 million in assets under management over the past three years.
The JPMorgan commitment will be deployed over the next year and could potentially double Numerai’s current assets. Returns are tied to the fund’s unique crowdsourced trading models that combine artificial intelligence with quantitative strategies.
Strong Performance Attracts Wall Street Interest
Numerai delivered net returns exceeding 25% in 2024, attracting backing from prominent investors including Paul Tudor Jones. The fund launched in 2015 and has grown steadily to its current $450 million in assets under management.
The hedge fund also operates Numeraire (NMR), a cryptocurrency token launched in 2017. Following the JPMorgan news, NMR trading volumes increased over 880% according to CoinMarketCap data. In July, Numerai began a $1 million token buyback program.
JPMorgan has not commented directly on the investment. However, the bank has increased its digital asset involvement through partnerships with Coinbase and exploration of stablecoin issuance and crypto-backed lending services.
AI-Crypto Convergence Gains Momentum
The Numerai investment highlights growing convergence between artificial intelligence and cryptocurrency sectors. The fund blends AI, blockchain technology, and crowdsourced prediction models for its investment strategy.
This trend extends beyond hedge funds. Bitcoin mining companies like Hive Digital, Hut 8, TeraWulf, and IREN are reallocating resources toward AI and high-performance computing workloads.
DNA Fund CEO Chris Miglino noted that “decentralized AI is consuming everything we’re doing” in the crypto space. Bittensor, a decentralized machine learning network, currently maintains a $3.2 billion market capitalization.
Numerai is scaling its team following the JPMorgan investment. The company recently hired an AI researcher formerly at Meta and a trading engineer from Voleon among other new staff members.
The United Nations Conference on Trade and Development projects AI will become the world’s most valuable technology sector within the next decade. The organization estimates AI’s share of the global frontier technology market will quadruple over eight years.
