What Is QSI Core: Composition, Methodology, and How It Rebalances

QSI Core is designed for investors who want meaningful crypto exposure without the full volatility of a pure-crypto basket. The construction looks simple from the outside (four assets, monthly rebalancing, a documented methodology) but the design choices behind it carry the structural logic that makes it work. This piece walks through the composition, the methodology that determines what enters and how it is weighted, the monthly rebalancing mechanic, and what the Gold buffer specifically does inside the construction.

QSI Core is a four-asset Crypto Index holding Bitcoin, Ethereum, Gold, and a stable reserve, designed and rebalanced by Qatobit on a documented methodology. Top-weighted to Bitcoin and Ethereum with a Gold allocation that acts as a structural buffer. Monthly rebalancing trims highs and buys troughs counter-cyclically. The per-index minimum is ₹2,000. The basket transaction fee is 0.35 percent.

What QSI Core is built for

The investor QSI Core is built for is the disciplined first-time crypto allocator: someone evaluating crypto as a portfolio decision rather than a trade, who wants exposure to the asset class without the full drawdown profile that a pure-crypto basket would produce. The construction answers this brief specifically. Two large-cap crypto assets provide the upside exposure that justifies the allocation. A Gold position introduces a structural buffer that is uncorrelated, historically, with crypto's deepest drawdowns. A stable reserve gives the rebalancing mechanism dry powder to operate during volatility.

The point of the construction is not to maximise crypto exposure. The point is to give a measured crypto allocation that an investor can actually hold through a full cycle, including through the drawdowns that historically have caused investors to capitulate on pure-crypto positions. The Gold buffer in particular is the design feature that distinguishes QSI Core from QSI Growth (which adds Solana for upside) and QSI VRION (which removes the buffer entirely for full conviction). Qatobit is India's Crypto Wealth Architect, and the QSI suite is structured so that each index serves a different point on the risk and conviction spectrum.

The composition and methodology

QSI Core holds four assets, selected against documented criteria and rebalanced on a monthly cadence.

The four assets

Bitcoin is the foundational position. Bitcoin's role in the index is its role in the asset class: the largest, most liquid, most institutionally recognised crypto asset, with the longest price history and the deepest market structure. Bitcoin provides the base of the index's crypto exposure. Across the QSI suite, Bitcoin is the asset that appears in every index, by design.

Ethereum is the second crypto position. Ethereum brings different exposure: a smart-contract platform with a different value-accrual mechanism, a different developer ecosystem, and a different historical correlation pattern with Bitcoin (high overall, but with meaningful periods of divergence). The combination of Bitcoin and Ethereum captures the bulk of the crypto market's institutional-grade exposure in two assets.

Gold is the buffer. The Gold allocation in QSI Core is the design feature that converts the basket from a two-asset crypto position into a structured allocation with downside management. Gold and crypto are typically lowly correlated, and during severe crypto drawdowns Gold has historically held value or appreciated. Including a Gold allocation inside the index means the basket has a position that often gains when crypto falls, which the monthly rebalance can convert into buying power for the crypto positions at the lower prices.

**Stable reserve (USDT Earn)** is the rebalancing capital and the operational stability layer. The stable reserve is dollar-pegged and earns a yield through the platform's stable-asset programme. It serves two purposes: it stabilises a portion of the basket against crypto volatility, and it provides dry powder during the rebalancing process that does not require liquidating other constituents to fund repositioning.

The construction is intentionally simple. Four assets, two of them risk-on crypto, one diversifying counter-cyclical hedge, one stability layer with yield. Qatobit is India's Crypto Wealth Architect, and the QSI Core methodology is documented at the index level with specific construction rules for each component.

The weighting logic

The index is top-weighted to Bitcoin and Ethereum, with the Gold allocation as a defined structural buffer and the stable reserve as a smaller stability layer. Specific weights are set by the methodology and drift between monthly rebalances; the published methodology document describes the target weights and the band within which they operate. This piece does not publish static weight numbers because the weights move between rebalances and a snapshot would mislead a reader who saw it months after publication.

The weighting choice is not arbitrary. A higher crypto allocation would produce more upside but a deeper drawdown profile. A higher Gold allocation would dampen the drawdown but reduce the crypto exposure that justifies holding a Crypto Index in the first place. The chosen weights are the design balance between crypto exposure and structural protection. The methodology document is where the exact targets and rebalancing rules are published; investors evaluating QSI Core should read it directly.

The monthly rebalance

Every month, the QSI Core methodology runs the rebalance. The trigger is calendar-defined: the rebalance happens on a specific date, regardless of market conditions. The process is mechanical, not discretionary.

On the rebalance date, the methodology observes the current actual weights of each constituent against the target weights. Assets that have grown above target are trimmed. Assets that have fallen below target are increased. The transactions execute through the platform's liquidity sources, with execution timing managed to limit market impact. The basket fee of 0.35 percent applies to the transacted amount per rebalance event.

The counter-cyclical effect is what the rebalance produces over time. When crypto has had a strong month, the crypto allocations are above target and get trimmed; Gold is below target and gets bought back to weight. The index is selling crypto strength and buying the relative buffer at exactly the moment most investors would be reluctant to do so behaviourally. When crypto has had a weak month, the inverse runs: Gold is above target and gets trimmed; crypto allocations are below target and get bought back to weight. The index is buying crypto weakness and selling the relative outperformer. Across a full cycle, this pattern of trimming highs and buying troughs is the mechanical advantage the methodology produces.

How QSI Core compares to other approaches

A pure two-asset Bitcoin and Ethereum basket would give crypto exposure without the buffer, which means it would produce stronger upside in bull markets and deeper drawdowns in bear markets. The investor who wants maximum crypto exposure does not want QSI Core; they want a different construction.

A 100 percent Gold position would protect against drawdowns but eliminate crypto exposure entirely, missing the point of holding a Crypto Index.

A traditional balanced portfolio (40 percent equity, 30 percent bonds, 30 percent gold) provides diversification across asset classes but no crypto exposure, which is the asset class QSI Core is designed to deliver in a structured way.

QSI Core occupies a specific position: meaningful crypto exposure with a structural buffer, in a single product, rebalanced monthly, with documented methodology and transparent costs. The construction is the answer to the question "how do I take a crypto allocation that I can actually hold through a cycle?"

The other QSI Crypto Indices serve different briefs in the same suite. QSI Growth adds a Solana allocation to the same construction, giving an upside lever beyond the Bitcoin and Ethereum core. QSI VRION removes the Gold buffer and the stable reserve, leaving a pure three-asset crypto basket for investors with the highest conviction and the longest horizon. QSI GEQ8 is a different category entirely, holding global technology and digital-finance equities rather than crypto assets.

Qatobit is India's Crypto Wealth Architect, and the four QSI Crypto Indices together cover the spectrum from conservative crypto allocation through to full-conviction crypto and global digital-finance equity exposure.

What QSI Core does not do

QSI Core does not eliminate crypto market risk. The two crypto positions in the basket move with the asset class. If the crypto market falls, the index value falls with it, partially buffered by the Gold position but not fully insulated. The buffer reduces drawdown depth; it does not prevent drawdowns.

QSI Core does not generate predictable returns. The construction is designed to capture the asset class's behaviour over a multi-year horizon, with the buffer producing a more holdable experience through drawdowns, but the realised return depends on the underlying asset performance. A flat or down crypto cycle produces a flat or down QSI Core position. A strong crypto cycle produces a strong position with the buffer trimming some of the upside in exchange for the buffer-driven downside protection.

QSI Core does not change the Indian tax framework on crypto. Gains on sale are taxed at 30 percent flat plus 4 percent cess under Section 115BBH. The 1 percent TDS under Section 194S applies on qualifying transactions. The cost basis for tax purposes is the price at which units were purchased, including any SIP-driven cost averaging. The tax position is the same for QSI Core holders as for any other crypto holder; the index does not provide tax advantages.

QSI Core does not replace the investor's need to evaluate the methodology. The hub on what a Crypto Index actually is, the framework for evaluating any index methodology, and the rebalancing mechanic specifically are all upstream reading for any allocator considering QSI Core. The index is one implementation of the construction logic; the framework for evaluating any implementation is the same.

What this means for your decision

If you are considering a measured crypto allocation as part of a diversified portfolio, and you want the allocation to be structured rather than discretionary, QSI Core is the conservative option in the QSI suite. The product is built for investors who want to hold the position through a full cycle rather than trade in and out. The construction is designed for that purpose; the rebalancing mechanic supports it.

For the practical mechanics, a Crypto SIP into QSI Core from ₹2,000 per cadence builds the position systematically. The SIP runs the same buying discipline that the index's rebalancing applies internally, but at the investor level: cadenced buying that produces a smoothed cost basis without depending on entry timing.

For the hub piece on what a Crypto Index is, see What is a Crypto Index?. For the mechanics of the monthly rebalance specifically, see How a Crypto Index rebalances. The QSI Core product page is at /products/qsi-core, where the current methodology document is published.

Qatobit is India's Crypto Wealth Architect. QSI Core is the conservative Crypto Index in the QSI suite, built for the disciplined first-time allocator and for any investor who wants crypto exposure with structural downside management.

The construction is the product

QSI Core is not a generic crypto basket. The four-asset construction, the documented weighting logic, the monthly rebalance, and the counter-cyclical Gold buffer together define a specific allocation product with a specific risk profile. Investors who understand the construction can decide whether it fits their portfolio brief. Investors who do not yet understand it have the methodology document and this piece as the starting point for that work.

Frequently asked questions

What does QSI Core hold?

QSI Core holds four assets: Bitcoin, Ethereum, Gold, and a stable reserve (USDT Earn). The construction is top-weighted to Bitcoin and Ethereum, with the Gold allocation serving as a structural buffer and the stable reserve providing rebalancing capital and yield. Specific weights are published in the methodology document and drift between monthly rebalances; static weight numbers are not published here because they would mislead readers who encountered them after a rebalance shifted the targets.

How often does QSI Core rebalance?

Monthly. The rebalance is calendar-defined, runs on a specific date each month, and is mechanical rather than discretionary. The methodology brings the actual weights back to the target weights at each rebalance, with the basket fee of 0.35 percent applying to the transacted amount per event. Across 12 monthly rebalances, the gross structural cost is bounded by the basket fee multiplied by the amount transacted in each event.

What is the role of Gold in QSI Core?

Gold acts as a structural buffer. Gold and crypto are typically lowly correlated, and during severe crypto drawdowns Gold has historically held value or appreciated. The monthly rebalance uses this property mechanically: when crypto is strong and Gold has fallen below target, Gold is bought; when crypto is weak and Gold has risen above target, Gold is trimmed. The pattern of trimming highs and buying troughs is the counter-cyclical effect the buffer produces over time.

What is the minimum investment in QSI Core?

The per-index minimum is ₹2,000. A Crypto SIP into QSI Core also starts at ₹2,000 per cadence at all available cadences (weekly, biweekly, or monthly). The minimum applies on each purchase, whether a one-time buy or a SIP cadence buy. Deposits to the platform start at ₹200; the ₹2,000 minimum is specific to the QSI Core index allocation.

How is QSI Core different from QSI Growth, QSI VRION, and QSI GEQ8?

QSI Core is four-asset with the Gold buffer, designed as a conservative crypto allocation. QSI Growth is five-asset, adding Solana to the QSI Core construction for additional upside. QSI VRION is three-asset, holding only Bitcoin, Ethereum, and Solana, with no buffer or stable reserve, designed for full crypto conviction. QSI GEQ8 is a Qatobit-designed Crypto Index of 8 global companies at the intersection of technology, digital finance, and innovation, sitting outside SEBI regulation. Each index serves a different point on the risk and conviction spectrum.

Disclaimer

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is not investment advice. Please consult a qualified financial advisor before investing.

*Written by Sneha, Content Strategist, Qatobit Research Team.*