The Fidelity Digital Assets report highlights that pension funds' cryptocurrency allocations have surpassed the 3% barrier, driven by growing institutional acceptance and regulatory advancements. The approval of spot Bitcoin ETFs in January 2024 has provided a regulated, accessible entry point for conservative pension plans, easing concerns about volatility and custody risks. Smaller, agile investors like family offices have led the charge, with 80% viewing digital assets favorably, compared to only 23% of pension plans. However, pensions are warming to crypto due to diversification benefits and Bitcoin’s potential as an inflation hedge. Despite this, challenges remain, including high volatility, limited historical data, and fiduciary caution under regulations like ERISA. The report underscores that while adoption is uneven, the infrastructure for institutional crypto investment is maturing, encouraging cautious pension funds to explore digital assets.