San Francisco hedge fund Numerai has secured a major vote of confidence from Wall Street.
The firm announced that JPMorgan Chase’s asset management division will commit as much as $500 million in new capital over the next year — an investment that could more than double Numerai’s current $450 million under management.
Crowdsourced Strategies, Crypto Incentives
Founded in 2019, Numerai runs its investment engine differently from traditional funds. It sources trading ideas from a global community of freelance analysts, rewarding contributors with its native cryptocurrency, Numeraire (NMR). Analysts then stake NMR to signal conviction in their models, aligning incentives with performance.
Performance That Caught JPMorgan’s Eye
The partnership comes after Numerai delivered a 25% return in 2024 and strung together 15 consecutive months of gains. That turnaround followed a rough 2023, when the fund shed 17% before overhauling its strategy to exit losing trades more quickly. “People usually want to see a track record,” said founder Richard Craib, noting that unconventional approaches take longer to win investor trust.
Competing With Giants
Craib sees Numerai as operating in the same arena as multi-strategy powerhouses like Millennium Management, but with one key distinction: lower costs. By outsourcing research to a distributed network of contributors and embedding incentives into blockchain tokens, the firm aims to scale efficiently while staying nimble.
With JPMorgan’s backing, Numerai now has the chance to expand that model significantly — potentially positioning itself as one of the most high-profile experiments in combining AI, crypto, and institutional finance.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
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