North Star
Latest update: Dec 2025
Rank-based crypto
A rank-based crypto index that selects the top 5 assets by market cap (excluding stablecoins and CEX tokens) and applies fixed weights by rank, rebalanced monthly.
Return since inception
+1125.19%
1Y return
-5.55%
Annualized return
+65.06%
Annualized volatility
78.37%
Max. drawdown
-70.35%
Index sharpe ratio
0.83
Info
Risk profile: High
Assets: BTC, ETH, XRP, SOL, TRX
Backtest: 12/01/2020 – 12/01/2025
Rebalancing period: Monthly
Rebalancing rules: Systematic rules-based
Overview & rationale
North Star is a rules-based, rank-based crypto index designed to provide systematic exposure to large-cap digital assets through a transparent and repeatable methodology. Each month, the index identifies the top 5 cryptoassets by market capitalization while excluding stablecoins and centralized-exchange tokens (e.g., BNB), which may exhibit materially different risk profiles and token economics.
Once constituents are selected, the index assigns fixed target weights according to a predefined rank-to-weight schedule (Rank 1 through Rank 5) and rebalances monthly. This structure keeps allocation rules stable and auditable, while allowing the investable set to adapt over time as market leadership changes.
| ASSET | TICKER | WEIGHT | MARKET CAP | TYPE |
|---|---|---|---|---|
| Bitcoin | BTC | 50% | $1.79 T | Crypto |
| Ethereum | ETH | 23% | $375 B | Crypto |
| Ripple | XRP | 17% | $121 B | Crypto |
| Solana | SOL | 6% | $74 B | Crypto |
| Tron | TRX | 4% | $27 B | Crypto |
Methodology overview
North Star is a rules-based, rank-based crypto index designed to provide systematic exposure to large-cap digital assets.
The index follows a transparent and repeatable methodology in which asset selection and weighting are determined by predefined rules, removing discretionary decision-making and ensuring consistency across market cycles.
All index calculations, allocations and rebalancing actions are governed by explicit rules and constraints, with the objective of maintaining methodological discipline and structural clarity over time.
Asset selection framework
The index universe is defined through a rank-based selection process.
At each monthly review, North Star selects the top 5 cryptoassets by market capitalization, subject to the following exclusions:
- Stablecoins
- Centralized exchange–issued tokens (CEX tokens), such as BNB
This framework focuses the index on liquid, widely traded assets while excluding tokens with structurally different economic characteristics or centralized issuance dynamics.
Allocation logic
Once the eligible asset set is identified, allocations are determined using a fixed rank-to-weight schedule.
Each asset is assigned a predefined target weight based on its relative market-cap rank (Rank 1 through Rank 5).
This approach keeps allocation rules simple, transparent and auditable, while allowing the index composition to adapt naturally as market leadership changes over time.
Rebalancing framework
North Star is reviewed and rebalanced on a monthly basis.
During each rebalancing window, constituent selection is updated according to the rank-based rules and target weights are reset based on the fixed rank-to-weight allocation scheme.
No intramonth trading is performed. Rebalancing is designed to preserve the intended structure of the index rather than to capture short-term market movements.
Correlation & risk management
The index framework is designed to manage concentration and exposure risk through systematic diversification across large-cap digital assets.
By limiting the number of constituents and applying predefined allocation constraints, North Star seeks to reduce unintended concentration effects that may arise during periods of extreme market dominance by individual assets.
The methodology prioritizes structural risk control rather than reactive or discretionary adjustments.
Governance & oversight
While North Star follows a fully rules-based methodology, a governance layer is in place to address exceptional circumstances.
This framework allows for temporary intervention in cases of data integrity issues, market disruptions, or extraordinary events that could compromise the reliability or continuity of index calculations.
Any governance actions are applied within predefined limits and are intended to protect the long-term integrity of the index methodology.
Risk profile
North Star is designed with a high risk profile.
Exposure to large-cap digital assets implies elevated volatility and the potential for significant drawdowns relative to traditional asset classes.
The index is not capital protected and may experience prolonged periods of underperformance during adverse market conditions.
What Cassiopea is
Cassiopea is:
– A rules-based, rank-based crypto index
– A systematic framework for large-cap digital asset exposure
– Designed for medium- to long-term
Cassiopea is designed for:
– Institutional allocators and professional investors
– Fintech platforms
– Independent financial advisors
FAQ
What is North Star designed to achieve?
North Star is designed to provide systematic exposure to large-cap cryptoassets through a transparent, rank-based index methodology.
The index aims to deliver a repeatable and auditable framework for tracking market leadership within the cryptoasset space, rather than pursuing discretionary positioning or guaranteed performance outcomes.
Is the strategy easy to replicate if allocations are visible?
Public weights alone do not represent the full methodology. The index’s value lies in the systematic framework, risk controls, correlation handling and governance process that determine how allocations evolve through time within constraints, elements that are not fully captured by a static snapshot.
Do you guarantee performance or outcomes?
No. Past performance, simulated results, or illustrative data are not indicative of future results. All indices and strategies are subject to market risk, and no guarantee is made regarding performance, returns, or risk mitigation.
Is Tungstenum a regulated financial advisor or asset manager?
Not at this time. Tungstenum does not currently operate as a regulated investment advisor, broker, or asset manager, and we do not provide personalized investment advice or discretionary portfolio management. We are actively working toward a future regulated setup to support broader institutional use cases. Until then, Tungstenum focuses on research, index methodology design, and analytical frameworks provided for informational, benchmarking, and professional product structuring purposes only. For further details, please refer to our Regulatory Disclaimer.
Are you open to media, academic, or speaking requests?
Yes. For media, academic, or speaking engagements, please specify the topic, audience, and context so the request can be reviewed appropriately.
Disclaimer
This page is provided for informational purposes only and is not intended as, and must not be construed as, investment advice, a personal recommendation, research, or an offer or solicitation to buy, sell, subscribe for, or transact in any financial instrument or to adopt any investment strategy. Any decision to invest should be made solely on the basis of an investor’s own assessment and, where appropriate, professional advice.
North Star is a rules-based index designed to measure the performance of a defined basket of assets. It is not an investable product and does not represent interests in any fund, security, derivative or managed account. Exposure to the index (if available through third-party products) may involve fees, costs, tracking differences and additional risks that are not reflected in the index performance figures.
Index values and performance may be volatile and are subject to market risk. Digital assets and commodities may experience significant price fluctuations, liquidity constraints, regulatory changes, market disruptions and operational risks. Past performance is not indicative of future results and no assurance is given that the index will achieve its stated objective, provide inflation protection, preserve capital or reduce drawdowns in all market conditions.
By accessing and using this page, you acknowledge and agree that information may be subject to change without notice and may contain estimates or assumptions. For additional information, please refer to our Terms of Service and Regulatory Disclaimer.