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JPMorgan says Bitcoin is undervalued compared to gold as volatility plummets

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The price of Numeraire (NMR) shot to a high of $19.55 within hours of Numerai securing a $500 million commitment from JPMorgan.

The cryptocurrency rose from around $8.11 on August 26 to hit a high of $19.55 before pulling back to $14.62 and climbing again to $16.60 at press time.

The surge highlights the growing influence of institutional investors in crypto, particularly when combined with artificial intelligence-driven financial models.

JPMorgan deal ignites investor excitement

The $500 million allocation that the San Francisco-based hedge fund backed by Paul Tudor Jones received from JPMorgan Asset Management is expected to be deployed over the next year and will directly support Numerai’s crowdsourced AI trading models, developed by thousands of data scientists globally.

Notably, Numerai has steadily grown its assets under management since its founding in 2015 and currently holds about $450 million.

With JPMorgan’s commitment, Numerai’s capital base could nearly double to $950 million.

The investment not only strengthens Numerai’s financial position but also signals growing confidence from traditional finance in crypto-friendly hedge funds.

A wider trend of Wall Street exploring crypto and AI integration

JPMorgan’s investment in Numerai reflects a wider trend of Wall Street exploring crypto and AI integration.

Beyond hedge funds, traditional players are increasingly experimenting with blockchain, stablecoins, and crypto-backed lending.

Numerai stands out as an early example of how decentralised, AI-driven models can attract mainstream capital and compete alongside established investment vehicles.

According to a report by the UNCTAD indicate that artificial intelligence will be one of the world’s most valuable technology sectors over the next decade, with its share of the global frontier tech market expected to quadruple in eight years.

Numerai’s model demonstrates how combining blockchain with AI can capture investor attention and capital, even amid volatile markets.

Numeraire (NMR) price surge

Numerai’s AI-based hedge fund model bridges the worlds of decentralised finance and traditional finance, attracting attention from retail traders and large investors alike.

Numeraire (NMR) is the native cryptocurrency of Numerai, and it is central to the hedge fund’s unique operating model.

Data scientists stake NMR tokens to back predictions, with strong models earning rewards while weaker ones lose their stake.

This system incentivises accurate forecasting and creates a market-driven approach to AI development.

The JPMorgan announcement triggered massive Numeraire (NMR) trading volumes, surging over 880% in a single day and pushing NMR to $11.40 before the broader rally took it even higher.

Despite the surge, NMR remains far below its all-time high of $93.15, and the token is highly volatile.

While JPMorgan’s backing and the token buyback program that started in July provide a strong fundamental catalyst, prices could swing sharply in response to market sentiment or trading activity.

The post JPMorgan’s $500M investment in Numerai sends NMR price up 140% appeared first on CoinJournal.

JPMorgan’s $500M investment in Numerai sends NMR price up 140%

Source: https://coinjournal.net/news/jpmorgans-500m-investment-in-numerai-sends-nmr-price-up-140/

Numeraire (NMR), the native token of the San Francisco-based crypto hedge fund Numerai, has surged more than 40% in the past 24 hours after JPMorgan announced investment in the hedge fund.

On Aug. 26, the Numerai team announced that JPMorgan has secured $500 million in capacity in Numerai, triggering the sharp price surge. Gains outpaced Cronos (CRO), which spiked after Trump Media announced a partnership with Crypto.com.

As NMR price broke to near $12.40, Numeraire’s daily volume jumped more than 800% to over $115 million. The token’s price reached its highest price since February.

JPMorgan secures $500 million capacity in Numerai hedge fund

As the intersection between artificial intelligence and decentralised finance grows, the crypto sector has become a magnet for top collaborations.

Numerai, the San Francisco-based hedge fund built by data scientists, is one of those in the ascendancy.

On Tuesday, the platform revealed that it had secured a $500 million commitment from JPMorgan Asset Management, with this coming after Numerai saw its assets grow from $60 million to $450 million.

The $500 million allocation follows Numerai’s exceptional performance in 2024, delivering a 25.45% net return with a Sharpe ratio of 2.75.

As highlighted in Numerai’s blog, investment from JPMorgan, one of the largest allocators to quantitative strategies globally, signals Wall Street’s growing confidence in AI-powered financial models.

The Paul Tudor Jones-backed hedge fund is set to see its assets under management more than double after this move.

A rebound that caught Wall Street’s attention

Numerai’s path has not been without setbacks. The firm lost 17% in 2023, echoing the struggles of other experimental quant platforms such as Quantopian, which shut down in 2020 after failing to deliver sustainable returns.

However, Numerai rebounded with a 25% gain in 2024 and has strung together 15 consecutive months of positive performance.

That turnaround drew the attention of institutional investors. “People don’t really want to invest until there’s a track record,” founder Richard Craib said in a Bloomberg report. “And when you’re doing something super unusual and different, like we are, they might wait even longer before they get excited.”

So far in 2025, Numerai’s flagship fund, Numerai One, is estimated to be up about 6% net of fees, compared to a 7% return for an index of quant equity market-neutral funds tracked by Aurum.

The fund has delivered gains in all but one year since inception, including a 20% rally in 2022 when broader markets slumped.

Big news for NMR?

Numerai, founded in 2019, operates a unique crowdsourced hedge fund model that leverages AI and data science.

On the platform, global data scientists can submit stock market predictions through an API and stake NMR tokens to back their models. Successful predictions earn rewards, while incorrect ones result in token burns, creating a dynamic incentive structure.

Additionally, Numerai has recently announced a repurchase of $1 million in NMR, a move that has the data science community excited.

The JPMorgan partnership not only validates Numerai’s vision but also highlights the potential for Numeraire in the crypto-AI sector.

With the hedge fund looking to scale its team and operations, the investor attention on NMR will likely be huge, particularly following this move by JPMorgan.

NMR price reached highs above $93 in May 2021 and  $25.80 in December 2024.

The post Numeraire price jumps 40% as JPMorgan commits $500m to Numerai appeared first on CoinJournal.

Numeraire price jumps 40% as JPMorgan commits $500m to Numerai

Source: https://coinjournal.net/news/numeraire-price-jumps-40-as-jpmorgan-commits-500m-to-numerai/

JPMorgan Chase & Co. is taking steps to modernize the voluntary carbon market by testing a new blockchain-based system for tokenizing carbon credits.

The initiative is being led by Kinexys, the bank’s blockchain unit, in collaboration with S&P Global Commodity Insights, EcoRegistry, and the International Carbon Registry.

The goal is to determine whether blockchain technology can effectively track the ownership and lifecycle of carbon credits from issuance through retirement.

Tokenization is the process of representing real-world assets as digital tokens on a blockchain, has gained traction across Wall Street.

Institutions like BlackRock and Deutsche Bank have explored their use to simplify and accelerate the settlement of traditional financial assets such as stocks and bonds.

By applying this technology to carbon credits, JPMorgan and its partners aim to address persistent challenges in the carbon market, including inefficiency, lack of transparency, market fragmentation, and the absence of standardized systems.

According to JPMorgan, a unified tokenized ecosystem could enable carbon credits to move seamlessly between buyers and sellers, improving overall market functionality.

Addressing market concerns

Alastair Northway, head of natural resource advisory at JPMorgan Payments, believes the voluntary carbon market is “ripe for innovation.”

He emphasized that blockchain tokenization could underpin a more transparent and interoperable global system, potentially increasing liquidity and trust in the market.

Enhanced visibility into pricing and project data is one potential benefit of adopting digital infrastructure.

A carbon credit typically signifies one metric ton of carbon dioxide that has either been removed from or not released into the atmosphere. These credits often originate from renewable energy or forestry projects.

In a tokenized system, each credit would exist as a digital asset on a blockchain, offering a verifiable and tradable representation of the environmental benefit.

Despite growing institutional and governmental interest in carbon trading, the market has struggled with credibility issues.

Allegations of greenwashing and shortcomings in project effectiveness have raised doubts about the integrity of some carbon offset programs.

JPMorgan itself has previously financed carbon projects and purchased carbon removal credits and now aims to be recognized as the “carbon bank of choice.”

Learning from past missteps

In a report released Wednesday, JPMorgan noted that while carbon credits are “poised to mature as market infrastructure strengthens,” that outcome is far from guaranteed.

The bank warned that failure to address market integrity issues or foster innovation could further damage confidence in a market that has recently stalled after a period of contraction.

The report also referenced earlier efforts by other organizations to tokenize carbon credits, some of which raised concerns about double-counting and transactions involving already-retired credits.

Such missteps have undermined trust and highlighted the need for more robust frameworks to support digital carbon markets.

As part of this new trial, JPMorgan and its partners aim to avoid those pitfalls by working with established registry systems and prioritizing accountability and traceability.

The post JP Morgan’s blockchain unit plans to tokenise carbon credits appeared first on CoinJournal.

JP Morgan’s blockchain unit plans to tokenise carbon credits

Source: https://coinjournal.net/news/jp-morgans-blockchain-unit-plans-to-tokenise-carbon-credits/