FWiW their exposure is relatively low, the figure quoted is an investment of "1 - 10 million", that's against all other investments made by that Testra fund of which many are on the order of 20 to 40 million, and a few at 100, 200, and 900 million.

diversifying with a hyped-up fomo thing at the time? they have >200 billion so it's kind of a rounding error for them. In fact, for the majority of outfits listed, "contagion" sounds too dramatic. $24mil for Blackrock?

Because they have a huge amount of assets - but also a growing pool of pensions to pay out.

So it makes sense for them to put a limited part of those funds into risky ventures. I'm sure at some point they invested in, for example, Apple when that looked like a dangerous proposition.

To be clear - I think anyone "investing" in crypto is likely to lose out in the long run. But if you are a large institution it makes sense to spread yourself into as many ventures as possible.