The crowdsourced hedge fund Numerai receives significant funding from JPMorgan, reflecting the growing interest from investors.
JPMorgan's Investment in Numerai
On August 26, Numerai announced securing $500 million from JPMorgan. This investment more than doubles the hedge fund's assets under management, currently at $450 million.
How Numerai Hedge Fund Works
Numerai is a crowdsourced hedge fund powered by its native cryptocurrency. Freelancers can submit their prediction models by staking numeraire (NMR) tokens. Successful models earn rewards, while unsuccessful ones lose their staked tokens.
Market Reaction to the Investment
Following the announcement of the new funding, the NMR token surged by 41.03%, currently trading at $11.65, although still below its multi-month high of $25.58 set in December 2024.
JPMorgan's investment in Numerai highlights the growing interest in innovative financial models and underscores the importance of a reliable track record in attracting institutional investors.
