The NYSE OPEN Venture Capital Unicorn Index (^NYSEOVC) tracks the daily valuations of private companies, with SpaceX, OpenAI, Databricks, Stripe, and Fanatics being the top five largest companies of the 50 the index tracks.

OPEN Co-Founder and CEO David Shapiro sits down with Julie Hyman and Josh Lipton in-studio to shed light on how the index works.

"There are folks who've been trying to create indices out there who rely primarily on fundraising data," Shapiro explains. "We took a different approach and what we've done is worked with ICE, the NYSE parent company [New York Stock Exchange], to create a methodology that incorporates real secondary transaction data. So we understand where these companies are trading in the secondary on a daily basis. And using that significant breadth of data can actually price them on a daily basis."

Shapiro comments on the index's future with hopes to eventually launch an ETF:

"It's very important with our partnership with the New York Stock Exchange that we introduce structures to the market that can increase access, but in a robust, reliable, and really trusted way. We don't want to rush something to market that doesn't meet that really stringent criteria. And so stage one is launch this index."

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This post was written by Luke Carberry Mogan.